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What will happen in the Randstad’s real estate market? Will prices go up or down? Is Amsterdam still a hotspot for foreign investors? How is the Dutch government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in the Randstad, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Rent prices in Utrecht will increase as more students and young professionals move in
Utrecht is becoming a magnet for students and young professionals, which is driving up rent prices.
With more students enrolling at Utrecht University and other institutions, the city is seeing a surge in demand for student housing. This is similar to trends in cities like Leiden and Maastricht, where student numbers have also been climbing.
The Netherlands is grappling with a severe student housing shortage, and Utrecht is no exception. The Dutch Ministry of Education expects an influx of 103,000 more students by the 2024-25 academic year, which will likely push rent prices even higher as more students head to Utrecht.
Utrecht is also attracting young professionals, especially in the tech sector. The city has invested in tech infrastructure, drawing startups and tech companies, which in turn brings more professionals. This influx, combined with limited rental properties, has made Utrecht's rental market highly competitive.
In 2023, rental prices in Utrecht rose by 5 percent, with new tenants paying more than the previous year. The average price per square meter for a rental property in Utrecht was higher than the national average, showing strong demand for housing.
As Utrecht continues to attract students and young professionals, the city's rental market is expected to remain tight, with rising rent prices as a likely outcome.
Sources: GSL Global, Pararius
2) Demand for rentals in university towns like Leiden and Delft will grow as more international students arrive
The influx of international students into university towns like Leiden and Delft has been significant in recent years. In 2024, the number of international students in Dutch universities more than doubled over the past decade, reaching over 122,287 students. This rapid growth in student numbers naturally leads to a higher demand for housing, especially in cities with prominent universities.
Leiden University, for instance, has a large student body of 27,713, and the demand for student housing in such cities is booming. This is compounded by the fact that there is a severe student housing shortage in the Netherlands, with an estimated need for around 40,000 extra student rooms to meet the current demand. As a result, rental prices in these areas have surged, with cities like Maastricht experiencing a 13.3% increase in rental prices in 2024.
International students often prefer renting accommodations close to their universities, focusing on factors like monthly rent and proximity to their study locations. This preference further drives the demand for rental properties in university towns. Additionally, the Dutch government has initiatives aimed at attracting more international students, which will likely continue to increase the demand for rental properties in these areas.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Netherlands versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Rents in Amsterdam will continue to rise because demand is high and supply is limited
Rents in Amsterdam have jumped by 5.4% year-on-year as of July 2024, marking the biggest increase since 1993.
Over the past five years, private rental prices in Amsterdam have surged by nearly 10-15%. This makes it tough for low- and middle-income folks to find a place they can afford. The city is buzzing with people, and everyone wants a piece of the action, which is driving prices up.
The Netherlands' population hit 18 million by August 2024, with many people living alone. This trend is pushing more people into cities like Amsterdam, where the vibe is urban and lively. But with more people comes a bigger housing crunch.
Even though there are efforts to build more homes, the Netherlands is still short by about 401,000 dwellings. Building new homes isn't easy, thanks to limited space, long zoning processes, and strict environmental rules. Amsterdam, in particular, feels the pinch as demand keeps outstripping supply.
In Amsterdam, the housing shortage is a real headache. The city is a magnet for people, but there just aren't enough homes to go around. This imbalance between supply and demand is a big reason why rents keep climbing.
So, if you're thinking about buying property in Amsterdam, know that the market is tight. The demand is high, and the supply is limited, which means prices are likely to keep rising.
Sources: NL Times, NL Times, Euronews, Huurscout
4) Rental yields in The Hague will stay stable as demand from international workers holds steady
The Hague's rental market is expected to experience stable yields due to the consistent demand from international workers. This is largely because The Hague is home to a significant number of international organizations and embassies, with 491 organizations and 115 embassies and consulates. This influx of international bodies creates a stable and growing demand for housing.
The expatriate population in The Hague has consistently grown over the years, driven by the presence of these international organizations. For example, the number of international organizations increased from 72 in 2005 to 240 by 2013, and now stands at 491. This steady growth suggests a continuous demand for rental properties.
Moreover, the stable employment rates in sectors that attract international workers further support the rental market. Almost 60% of the jobs in the region are performed by international employees, who contribute significantly to the local economy. This stable employment base ensures a consistent demand for rental housing.
Sources: Diplomat Magazine, Diplomat Magazine
5) Property prices in Randstad will keep rising because land is scarce and demand is high
The Randstad region is a bustling hub with limited space for new housing developments.
With its dense urban areas, the demand for homes in the Randstad is sky-high. This demand, coupled with the scarcity of land, naturally leads to rising property prices. Imagine trying to find a spot in a packed concert; that's what it's like trying to buy a home here.
Looking back, property prices in the Randstad have been on a steady climb. During the COVID-19 pandemic, for instance, the average home price in the Netherlands jumped from EUR 326,000 in early 2020 to EUR 427,000 by the end of 2022. It's like watching a rollercoaster that only goes up.
Government reports paint a clear picture: there's a significant housing shortage in the Randstad. In 2021, 900,000 people wanted to move but couldn't find a place, with the Randstad being the hardest hit. It's like musical chairs, but with fewer chairs than players.
Urbanization trends are drawing more people to the Randstad, further boosting the demand for housing. Strict zoning laws and regulations limit new housing developments, making homes even scarcer and pricier. It's like trying to squeeze more people into an already full elevator.
Rising rental prices in the Randstad are a clear sign of strong housing demand. Investors are keen to jump in, driving property prices even higher. Surveys show that homeownership is highly sought after in the Randstad, reinforcing the idea that prices will keep climbing due to limited supply and high demand.
Sources: ABN AMRO
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6) Foreign investors will favor Utrecht for tech sector opportunities
Utrecht is becoming a hotspot for tech investments, and there are several reasons why foreign investors are increasingly drawn to this vibrant city. First, Utrecht has been recognized as the most innovative region in the Netherlands, thanks to its favorable business climate and central location. This has led to a surge in tech startups, making it a hub for innovation.
Moreover, the Netherlands, including Utrecht, has seen a significant increase in foreign direct investment in the tech sector. In 2023, the Invest in Holland network supported 217 foreign companies, with a majority focusing on sustainable and innovative solutions. This trend highlights the growing interest in Utrecht as a tech destination.
Utrecht's strategic location within the Randstad, a densely populated urban area, makes it an ideal spot for businesses looking to expand into Europe. Its proximity to Amsterdam Airport Schiphol, a major international hub, further enhances its appeal. Additionally, Utrecht boasts a highly educated workforce, which is a significant draw for tech companies seeking skilled talent.
Sources: Invest in Holland, Provincie Utrecht, Utrecht International Center
7) More foreign buyers will be drawn to The Hague because of its international community and diplomatic presence
The Hague is a magnet for international communities thanks to its global institutions like the International Court of Justice.
With around 60,000 expats calling The Hague home as of 2020, the city is buzzing with a diverse crowd. This vibrant community is supported by top-notch international schools and amenities, making life here pretty sweet for foreign residents.
Even though foreign property purchases are dipping nationwide, The Hague is bucking the trend. The number of international workers buying homes has more than doubled since 2020, showing that the city is still a hot spot for property seekers.
High property prices in expat-friendly areas are a clear sign of strong demand. These neighborhoods are popular for a reason, offering a lifestyle that appeals to international buyers.
The Hague's appeal isn't just about its institutions; it's also about the lifestyle. The city offers a unique blend of culture, history, and modern living, which is a big draw for those looking to settle down.
With its diplomatic vibe and international flair, The Hague is set to attract even more foreign buyers in the coming years. The city's global connections and quality of life make it a top choice for those looking to invest in property.
Sources: Diplomat Magazine, Volunteer The Hague, Dutch News
8) Rental investment profits in Amsterdam will be affected by stricter rent control policies
Stricter rent control policies in Amsterdam are expected to impact the profitability of rental investments significantly. These policies, introduced in 2023 and 2024, have led to a decline in rental yields, as reported by Anywr Netherlands. The legislation increased the rent control limit, resulting in an average monthly rent reduction for many homes, which in turn reduced landlord profitability.
Case studies from other cities, like San Francisco, show a similar pattern where rent control measures led to a decline in the private rental sector's size. Although rents increased city-wide over time, the returns landlords could expect were limited. This suggests that while rent control can stabilize or reduce rent prices, it may also limit the financial returns for landlords.
Reports from real estate investment firms, such as CBRE Netherlands, have analyzed the impact of mid-rent regulations and concluded that these regulations would lead to a sharp deterioration in investment conditions. Investors are withdrawing from the Dutch market due to these regulations, which will affect rental yields. Additionally, landlords have expressed concerns over profitability under new regulations, as the introduction of stricter rent control measures is expected to limit the amount landlords can charge for rent.
Sources: Tandfonline, CBRE Netherlands
We have made this infographic to give you a quick and clear snapshot of the property market in the Netherlands. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Buyers will prefer energy-efficient homes as new environmental rules raise costs for older properties
New environmental regulations are making older homes more expensive to maintain.
These rules mean that older properties need to meet higher energy efficiency standards, which can be costly. For instance, in 2023, the European Union rolled out stricter energy efficiency regulations, causing a spike in compliance costs for older homes. Older homes generally use more energy, leading to higher bills compared to their energy-efficient counterparts.
According to a 2022 study by the Department of Energy's Lawrence Berkeley National Laboratory, homes with a higher Home Energy Score not only had lower energy bills but also boasted a higher resale value. This makes energy-efficient homes more appealing to buyers who want to save money in the long run. There's a noticeable shift towards sustainable living among homebuyers.
A 2023 survey by the National Association of Home Builders showed that 46% of builders found it easier to market green homes, and 71% of households considered energy efficiency important. This change in buyer preferences is nudging the market towards energy-efficient homes. Energy-efficient homes often sell for a premium.
For example, a 2022 study by the North Carolina Building Performance Association found that green certified homes sold for 9.5% more than non-certified ones. This trend is encouraging buyers to opt for energy-efficient properties over older ones. New environmental regulations will increase the cost of older properties, pushing buyers towards energy-efficient homes.
Sources: Energy Star, NAR Realtor, Green Builder Media, MEEA
10) More foreign buyers will choose Rotterdam due to its lower prices compared to other Randstad cities
Foreign buyers are increasingly targeting Rotterdam for its affordable prices compared to other Randstad cities. In 2023 and 2024, property prices in cities like Amsterdam, The Hague, and Utrecht rose significantly. For example, the cost of living in Amsterdam was much higher, with an average monthly expense of around 5,600 EUR, while in Rotterdam, it was approximately 3,140.6 EUR for a family of four.
Rotterdam offers a more affordable housing market, with the cost of renting a one-bedroom apartment in the city center being around 1,414.29 EUR. This is relatively affordable compared to other Randstad cities. Additionally, for a single person, the average cost of living without rent is about 900 EUR, making it an attractive option for foreign buyers.
Moreover, Rotterdam's strategic location as a major port city has led to increasing foreign investment in its real estate market. The city's innovative urban designs and infrastructure improvements, such as the Nassauhaven floating neighborhood, have also attracted international attention. Rotterdam's focus on sustainability and circular economy initiatives further enhances its appeal to foreign investors.
Sources: Living Cost, Leverage Edu, GCA
11) Fewer foreign buyers will invest in Amsterdam due to stricter regulations and higher taxes
In recent years, Amsterdam has become less appealing to foreign buyers due to a combination of stricter regulations and increased taxes. Back in 2023, the value of homes in Amsterdam fell by 3.5%, which was a significant drop. This decline in property value, coupled with higher property taxes for non-resident buyers, made the city less attractive to international investors. The Dutch tax system became more complicated, especially for those using Box 3 calculations, with tax rates for non-resident property owners rising to 32%.
Additionally, the city implemented stricter rental regulations, which had a major impact on the short-term rental market. For example, there was an 82% drop in Airbnb listings in 2023, forcing many landlords to switch to long-term rentals. This shift increased the supply of long-term rentals, potentially lowering rental prices and reducing profitability for landlords. Government policies also aimed to prioritize local buyers, introducing rent control measures that further discouraged foreign investment.
Reports from real estate agents and surveys indicated a decline in interest from international buyers, largely due to concerns about these regulatory changes. Media coverage highlighted the challenges faced by foreign property owners, such as the complexities of the tax system and the impact of stricter rental regulations. This negative publicity likely deterred foreign buyers from investing in Amsterdam.
Sources: IAmExpat, Orange Tax, Expatica
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12) Rental yields in Utrecht will increase as it becomes a startup and innovation hub
Utrecht is quickly becoming a hotspot for startups and innovation, leading to a rise in rental yields.
The city has seen a boom in startups and tech companies, with an 82% increase in office space leasing in 2022 compared to the previous year. This surge is particularly noticeable around the Central Railway Station, where big names like Micreos and Utrecht University have set up shop.
Utrecht's startup scene is thriving, thanks to government initiatives that promote innovation and entrepreneurship. These efforts are drawing more businesses to the area, creating a vibrant ecosystem for new ventures.
Investments in infrastructure and public transport have made Utrecht even more appealing. The city’s improved connectivity is a major draw for both businesses and residents, especially young professionals looking for opportunities in the tech and innovation sectors.
With higher employment rates in these industries, Utrecht is becoming a magnet for talent. This influx of skilled workers is further boosting the demand for office and residential spaces, making it a prime location for property investment.
As Utrecht continues to grow as a hub for startups, rental yields are expected to climb, offering promising returns for investors.
Sources: Colliers, Knight Frank
13) Price growth in Randstad will slow as remote work leads people to cheaper areas
Remote work has become a major trend, with 65% of people in the Netherlands working from home at least part-time in 2022.
This shift is changing where people want to live, as many are now looking to move away from big cities to more suburban or rural areas. With remote work, they can live further from their jobs, leading to increased demand for housing in less expensive regions.
Take the Delfzijl region, for example, where house prices are expected to rise by 16% in 2024. Meanwhile, in the bustling Randstad, price increases have been more modest, reflecting a shift in preferences.
Infrastructure improvements in rural areas are also playing a role, making these regions more accessible and attractive. This is encouraging more people to consider moving away from the city hustle.
As more people opt for remote work, the pace of price growth in the Randstad is expected to slow down. This trend is reshaping the housing market landscape.
For those considering buying property, understanding these shifts can be crucial. The appeal of less crowded, more affordable areas is growing, offering new opportunities for potential homeowners.
Sources: Jobgether, Slow and Steady Blog, Rabobank
14) Demand for homes in Amsterdam's city center will drop as remote work drives people to quieter suburbs
In 2023 and 2024, we saw a significant rise in remote work adoption in the Netherlands, with over half of the workforce working remotely at least part-time. This trend was much higher than the EU average, showing how the Netherlands was leading the way in embracing remote work.
As more people worked from home, they started looking for larger living spaces to accommodate home offices and other needs. This led to a growing preference for suburban areas, where homes typically offer more space compared to the city center.
During this time, property prices in Amsterdam's suburbs began to rise, indicating increased interest in these areas. In contrast, rental yields in the city center were decreasing, suggesting that the demand for city center properties was not as strong as before.
Sources: Global Property Guide, TradingView, Global Property Guide, Rentastic
We made this infographic to show you how property prices in the Netherlands compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Property values in Rotterdam's waterfront areas will rise as urban renewal projects make them more attractive
Rotterdam's waterfront neighborhoods are set to see a rise in property values due to exciting urban renewal projects.
Over the past few years, Rotterdam has poured 233 million euros into seven key projects aimed at boosting eco-sustainability and livability. These efforts are transforming the city into a more attractive place to live, naturally pushing up property values. The focus on green initiatives, like the green roof subsidy program, encourages residents to install eco-friendly roofs, adding greenery and solar panels, which further enhances the area's charm.
Improved infrastructure is another big draw. New urban transport hubs are making it easier to get around, whether you're walking or biking. This not only cuts down on air pollution but also turns these neighborhoods into vibrant social centers, making them even more appealing to potential buyers.
International investors are taking notice too. Rotterdam's strategic location and ongoing projects are attracting global interest, which is expected to further boost property values. The trend of urbanization and more people working from home is driving demand for housing in city centers, and Rotterdam is no exception.
As more people look to live in urban areas, the demand for housing in Rotterdam's waterfront neighborhoods is likely to rise. This increased interest is expected to drive up property values, making it a promising time to invest in these areas.
Sources: ABN AMRO, Abitare, Interlace Hub
16) Rental yields in Rotterdam will rise as more young professionals are drawn to its growing economy
Rotterdam is buzzing with job opportunities, especially in tech and startups.
Thanks to its prime spot in the Randstad region, Rotterdam is becoming a magnet for innovation and entrepreneurship. The city is seeing a wave of startups and tech companies, drawn by its business-friendly vibe and government backing for new ideas. This means more jobs and a pull for young professionals eager for exciting careers.
The Dutch government is pouring money into Rotterdam's infrastructure, from public transport to urban projects. These upgrades are making the city more livable, which is a big plus for young folks who want easy access and great connectivity.
Rotterdam's growing economy is attracting young professionals, which is likely to boost rental yields. The city's strategic location and focus on innovation are key factors in this trend. As more young people move in for work, the demand for housing is expected to rise, making it a promising spot for property investment.
With its vibrant job market and improved infrastructure, Rotterdam is becoming a top choice for young professionals. This influx is set to increase rental yields, as more people look for places to live in this dynamic city. The combination of job opportunities and a better living environment is a win-win for both renters and property investors.
Rotterdam's transformation into a tech and startup hub is not just about jobs; it's about creating a city where young professionals want to live and thrive. This shift is making the city more attractive for property buyers looking to tap into the growing rental market.
Sources: Aparthotel, Living Cost
17) Rental yields in Amsterdam will drop as more properties hit the market with a shift to homeownership
Amsterdam is seeing a big shift towards homeownership these days.
Thanks to government incentives and low mortgage rates, more people are buying homes, which means fewer folks are looking to rent. This trend is making a real impact on the rental market. With more people owning homes, the demand for rental properties is naturally dropping.
On top of that, stricter short-term rental rules have cut down on Airbnb listings in Amsterdam. This change has opened up more properties for long-term rentals, increasing the supply. When there are more places to rent, landlords have to compete harder, which can lead to lower rental yields.
The government is also helping first-time buyers with incentives like adjustments to the National Homebuyers Guarantee threshold. This makes it easier for people to buy homes, further reducing the need for rentals. Even with rising mortgage rates, surveys show that people still prefer buying over renting.
Sources: Financial Consultancy Holland, NL Times, NL Times
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.