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What will happen in Rotterdam’s real estate market? Will prices go up or down? Is Rotterdam 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 Rotterdam, 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) Rotterdam’s home prices will grow moderately because demand remains high and supply is limited
In 2023 and 2024, Rotterdam's residential real estate prices rose significantly.
The median home price jumped by 11% to $278K, while the price per square foot climbed 17.7% to $189. This shows a strong demand for housing in the city. Rotterdam's population is on the rise, now over 1 million residents as of 2024, growing at a rate of 0.38% annually. This means more people are searching for homes, pushing demand even higher.
But here's the catch: Rotterdam is not expanding in size. The city covers just 325.79 square kilometers, and there's limited land available for new housing. This scarcity makes it tough to keep up with the demand, nudging property prices upward.
Urbanization is another factor. As more people move to the city, the need for housing intensifies. This urban shift is a key driver of the moderate growth in real estate prices. The city's charm and opportunities are pulling people in, but the space to accommodate them is tight.
Local insiders know that Rotterdam's unique blend of modern architecture and cultural heritage makes it a hot spot. This appeal, combined with the limited space, means property values are likely to keep climbing. The city's efforts to manage housing vacancy are ongoing, but the balance between demand and supply remains delicate.
So, if you're considering buying property in Rotterdam, keep in mind the sustained demand and limited supply that are shaping the market. It's a dynamic scene, with prices reflecting the city's growing allure and spatial constraints.
Sources: Redfin, World Population Review, Rotterdam Style
2) Property prices in Katendrecht will rise as it becomes a trendy residential hotspot
The buzz around Katendrecht is making it a hot spot for homebuyers.
In just a year, property values in Katendrecht jumped from €327,032 to €343,529, showing a clear upward trend. This isn't just a fluke; it's part of a broader pattern of rising prices in the area.
By the end of 2024, the price per square meter climbed from €4,341 to €4,560. People are shelling out more cash, with the average transaction price moving from €417,605 to €446,558. Even the list prices are up, from €415,930 to €435,046, highlighting the area's growing allure.
Katendrecht is shaking off its industrial past and stepping into the limelight as a lively residential and cultural hub. New housing projects, trendy shops, and chic restaurants are popping up, along with a five-star hotel. These changes are drawing in both new residents and investors.
Locals and newcomers alike are enjoying the new community spaces, like the bustling food market and a multifunctional area that brings the neighborhood together. This urban renewal is making Katendrecht a magnet for those seeking a vibrant lifestyle.
With all these developments, it's no wonder that property prices are on the rise. Katendrecht is quickly becoming the place to be, and those in the know are eager to get in on the action.
Sources: Walter Living, Rotterdam.nl, Scharnier Katendrecht
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.
3) More homeowners will rent out parts of their homes due to the sharing economy's growth
The sharing economy is booming, especially in cities like Rotterdam.
Homeowners are jumping on platforms like Airbnb to earn extra cash by renting out parts of their homes. In 2023, a typical host in Rotterdam made about €31K annually from short-term rentals, with an impressive 80% occupancy rate. This steady income stream is a big draw for many.
Rotterdam's lenient short-term rental rules make it even easier for homeowners to dive into this market without worrying about strict regulations. With property prices and living costs on the rise, many are looking for ways to boost their income, and renting out a room or two is a smart move.
Success stories in the media highlight the financial perks, encouraging more people to consider this option. Plus, technology is on their side. Platforms like Airbnb have made managing rentals a breeze, opening the door for more homeowners to get involved.
Sources: Airbtics, PR Newswire, Coliving.com
4) Rental yields near universities will stay strong as the student population grows
Rotterdam's student population is booming, keeping rental yields near universities strong.
With universities like Erasmus University Rotterdam seeing thousands of new students each year, the demand for housing is naturally on the rise. Students are flocking to areas close to their campuses, making these neighborhoods highly sought after. This preference for proximity to academic facilities means rental prices are climbing as students compete for limited spaces.
The competition for student accommodation is intense, especially in neighborhoods near universities. Students want to live close to their classes, and this convenience factor is a major driver of demand. Despite efforts to expand student housing, there's still a shortage, which keeps the market tight and prices high.
International students add another layer to this dynamic, as they make up a significant portion of the student body. Their presence ensures that the demand for housing remains consistently high. For property investors, this scenario presents a lucrative opportunity, as student housing continues to offer attractive returns.
Even with government and university initiatives to increase housing, the supply hasn't caught up with the demand. This ongoing shortage, coupled with the influx of students, means that rental yields remain robust in these areas. Investors are keenly aware of this trend, seeing it as a chance to capitalize on the thriving student market.
In essence, the growing student population in Rotterdam is a key factor in sustaining strong rental yields near universities. As long as students continue to prioritize living close to their campuses, the demand for housing in these areas will remain high, offering promising returns for property investors.
Sources: Nuffic, Hogeschool Rotterdam, NL Times
5) Rotterdam rents will increase moderately as more international talent moves in
Rents in Rotterdam are on the rise as the city becomes a magnet for international talent.
Rotterdam is buzzing with international students and professionals, driving up the demand for housing. In 2023, the city saw a noticeable uptick in international students, which naturally pushed the need for rental properties. This influx is not just about students; multinational companies are setting up shop in Rotterdam, making it a hotspot for global professionals.
The Dutch government is actively promoting Rotterdam as a business hub, which is attracting more international companies and professionals. This effort is a big reason why expatriates are flocking to the city, leading to higher rental prices. The city's appeal is growing, and with it, the demand for housing.
Reports show that rental properties in Rotterdam have low vacancy rates, a clear indicator of high demand. In July 2024, rents increased by an average of 5.9%, with changes in tenancy adding another 1.0% to the rise. This trend is fueled by the limited availability of new housing developments, making it tough to find a place to live.
Rotterdam's popularity among international residents is only growing, and with it, the pressure on the housing market. The city's charm and opportunities are undeniable, but they come with a price. New housing developments are scarce, which only adds to the demand and rising rental costs.
As Rotterdam continues to attract international talent, the rental market is feeling the heat. The city's vibrant culture and economic opportunities are drawing people in, but the housing market is struggling to keep up. Expect rental prices to keep climbing as more people call Rotterdam home.
Sources: IAmExpat, Migration Policy Institute, CBS, Migration Policy Institute
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6) Rotterdam’s real estate will attract more non-EU investors as the euro weakens
The weakening euro is making Rotterdam's real estate market more attractive to non-EU investors.
When the euro drops in value against stronger currencies like the US dollar, European assets become cheaper for those using these currencies. This means non-EU investors can get more bang for their buck when buying property in Rotterdam.
Rotterdam has already seen a lot of foreign investment in its real estate market. Back in 2016, 94.6% of office investments in the city came from foreign investors, mainly from the US and Germany. This shows that foreign investors are keen on Rotterdam, and a weaker euro could make them even more interested.
Compared to cities like Amsterdam, Rotterdam offers a higher yield gap, which is appealing for investors looking for better returns. The city's real estate market has been buzzing, with €1.1 billion in investments over the past two years, showing its potential for growth and profitability.
As the euro continues to weaken, non-EU investors might find Rotterdam's real estate market even more enticing. The city's strategic location and vibrant economy add to its appeal, making it a hotspot for savvy investors.
7) Foreign buyers will keep investing in the city due to its reputation as a business hub
Rotterdam is a magnet for foreign investors looking to dive into the Dutch market.
In 2024, the Netherlands saw a boost in Foreign Direct Investment, with an increase of 14.6 billion USD, reversing a previous decline. This surge underscores a renewed interest in the country, with Rotterdam at the heart of this investment wave.
Rotterdam's appeal lies in its stable economy and top-notch healthcare, alongside a world-class education system and solid political stability. These factors make it a prime spot for multinational companies to set up shop.
Recent upgrades in infrastructure and connectivity have further enhanced Rotterdam's status as a business hub. These improvements have fostered public-private partnerships that are speeding up development across the city.
Internationally, Rotterdam is celebrated for its entrepreneurial spirit and vibrant start-up scene. This reputation draws in global interest, making it a hotspot for property and business ventures.
With its high quality of life and dynamic business environment, Rotterdam continues to attract foreign buyers eager for investment opportunities.
Sources: CEIC Data, International Conference Alerts, European Business Magazine
8) Eco-friendly property values will rise as new regulations promote sustainable building practices
In recent years, we've seen a significant shift in how people value eco-friendly properties, especially in places like Rotterdam. This change is largely driven by new regulations that promote sustainable building practices. These regulations have made eco-friendly homes more attractive to buyers, which naturally increases their value.
One of the key reasons for this increase in value is the growing demand for energy-efficient homes. For instance, Rotterdam's "energieklussers" program has helped over 20,000 households reduce their energy costs, showing that people are actively seeking out homes that are more sustainable. This demand is a clear indicator that eco-friendly properties are becoming more desirable.
Additionally, the local government has been updating building standards to prioritize sustainability. This includes using materials that last longer and are suitable for circular use, as well as encouraging energy-efficient solutions like solar panels. These updates not only make eco-friendly homes more appealing but also ensure they are built to last, further boosting their value.
Moreover, the success of projects like the Langeveld Building at Erasmus University, which received a high sustainability rating, demonstrates how sustainable buildings can significantly increase property values. This serves as an inspiration for other developments, showing that investing in eco-friendly properties is a smart financial decision.
Sources: Rotterdam Style, Rotterdam Style, Erasmus University Rotterdam
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.
9) Rental yields in city centers will dip slightly as remote work drives people to suburban areas
The shift towards remote work has been a significant trend in recent years, particularly in places like Rotterdam. In 2023, the Netherlands led the EU with a 51.9% remote work adoption rate, and predictions for 2024 suggested an increase to 73.5%.
This rise in remote work has influenced people's living preferences. Many remote workers are opting for suburban living, seeking more space, dedicated office areas, and amenities like gyms and outdoor spaces. This trend is driven by the desire for a better quality of life.
As a result, there's been a noticeable increase in demand for properties in suburban areas, leading to rising property prices there. Conversely, the demand for rental properties in city centers has declined, as fewer people need to live close to their workplaces.
Sources: TradingView, Euronews, Minut
10) Rotterdam's residential property values will steadily rise over the next decade
Rotterdam's property market is on the rise, with house prices climbing steadily.
In 2024, house prices in Rotterdam jumped by an average of 9.1%, and they're expected to go up by 10.7% in 2025. This isn't just a blip; it's part of a strong upward trend in property values. The city's growing population and changing household sizes are driving this demand, putting pressure on the housing market.
Rotterdam is buzzing with urban development projects, like the transformation of the historic Codrico factory site. These projects are not just about new buildings; they're about enhancing the city's infrastructure and amenities. Initiatives like the Resilient BoTu are making neighborhoods more sustainable and attractive, drawing in both residents and investors.
The city's efforts to create appealing living areas are paying off. With more people looking to call Rotterdam home, the demand for housing is only going to increase. This demand is a key factor in the appreciation of property values, making it a hot spot for potential buyers.
Investors are taking note of Rotterdam's potential. The combination of urban development and a growing population is creating a perfect storm for property appreciation. As the city continues to evolve, it's becoming an increasingly attractive place to live and invest.
For those considering buying property in Rotterdam, the signs are clear: the market is set for steady growth. With ongoing projects and a rising demand for housing, the city's property values are expected to keep climbing.
Sources: Rabobank, Huurscout, UBM Development
11) Interest in homes near parks and recreational areas will grow as work-life balance becomes more important
In recent years, there's been a noticeable shift towards prioritizing work-life balance, and this trend has influenced where people want to live. Many individuals are now looking for homes that offer easy access to parks and recreational areas. This is because being close to green spaces can significantly enhance one's quality of life, providing a peaceful escape from the hustle and bustle of daily work routines.
In Rotterdam, neighborhoods with access to green spaces like Hofbogen Park and Park Maashaven have seen rising property values. These areas offer a mix of greenery, walking and cycling routes, and multifunctional spaces, making them attractive for residents seeking a better work-life balance. The city's investment of €233 million in green city improvements, including the development of these parks, has likely led to increased foot traffic and usage statistics for these areas.
Moreover, studies have consistently shown that homebuyers prefer living near parks and green spaces. This preference is driven by the desire for a healthier lifestyle and better work-life balance. Real estate listings in Rotterdam often emphasize the proximity to recreational areas, highlighting the availability of parks and green spaces. This marketing strategy is likely to attract homebuyers seeking a better work-life balance.
Additionally, the trend of remote work has given people more flexibility in choosing their residential locations. With the ability to work from anywhere, many are opting for locations that offer a better quality of life, including proximity to parks and recreational areas.
Sources: IAmExpat, The Flora Journal, Student Theses
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12) Rental yields in Rotterdam will stay steady as demand for rentals remains high
Rotterdam's population is steadily growing, reaching over a million by 2024.
This increase means more people are on the hunt for homes, naturally boosting the demand for rental properties. The city is a magnet for international students and expatriates, drawn by its lively culture and job opportunities. These newcomers often choose to rent, adding to the already strong demand.
Rotterdam's rental market is tight, with low vacancy rates indicating that most rental units are occupied. This is a clear sign of strong demand, which helps keep rental yields stable. Historical trends show that rental prices have been climbing, underscoring the market's stability and strength.
For those considering investing in property, Rotterdam offers a promising landscape. The city's appeal to a diverse population, including students and professionals, ensures a consistent demand for rentals. This demand is a key factor in maintaining stable rental yields.
Investors can feel confident about the future of Rotterdam's rental market. The combination of a growing population, international appeal, and low vacancy rates creates a robust environment for rental properties. This stability is attractive for anyone looking to invest in real estate.
With its vibrant community and economic opportunities, Rotterdam continues to be a top choice for renters. The city's ability to attract a wide range of residents supports a healthy rental market, making it a wise investment choice.
Sources: Global Property Guide, World Population Review
13) Demand for high-rise apartments will grow as Rotterdam urbanizes and expands vertically
Rotterdam is growing upwards as more people move to the city.
With 3,043 residents per square kilometer, Rotterdam is getting pretty packed. This means there's a big push for high-rise apartments to fit everyone in. It's like a puzzle where the pieces are people, and the board is the city.
New projects like Lumière and RISE are popping up, adding 1,750 new homes to the skyline. These aren't just any buildings; they're designed to be affordable and eco-friendly, making them a hit with a wide range of folks. The city council is all in, using these projects to give the city center a fresh look.
There's not much room to spread out in Rotterdam's city center, so building up is the way to go. Young people are especially into this, drawn by the modern perks of high-rise living. Think gyms, rooftop gardens, and maybe even a pool.
Rotterdam is also investing in public transport, making it easier to zip around the city. This is a big plus for high-rise living, as it means you can live high up and still get around town without a car.
As the city keeps growing, expect more high-rises to pop up. It's all about making the most of the space and keeping up with the demand for city living.
Sources: Rotterdam Style, World Population Review, Rotterdam Style
14) Property values in Afrikaanderwijk will rise significantly as it transforms into a cultural hotspot
The revitalization of the Afrikaanderwijk district is set to significantly boost property values as it transforms into a cultural hotspot. One of the key factors driving this change is the increased investment in local infrastructure and amenities. For instance, the Feyenoord City project has allocated substantial funds for developments like a new city bridge and the Stadionpark train station, which will enhance accessibility and attractiveness of the area.
Another important aspect is the rising property prices observed in nearby revitalized districts such as Veranda and Stadion Triangle. These areas have seen property values climb as a result of similar development efforts, suggesting that Afrikaanderwijk will likely experience the same trend. Additionally, the Rotterdam council's active involvement in the Feyenoord City project underscores a strong governmental commitment to urban renewal, which is known to positively impact property values.
The district is also expected to host a growing number of cultural events and festivals, like the African World Festival, drawing significant visitor numbers. This cultural vibrancy will not only enhance the district's appeal but also drive up property values. Furthermore, the influx of artists and creative professionals attracted by the revitalization efforts will increase housing demand, leading to higher property prices.
Sources: Rotterdam Style, The Wright
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Netherlands. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Property prices in neighborhoods near Rotterdam Central District will rise as the area expands
The ongoing expansion of the Rotterdam Central District is set to elevate property prices in the adjacent neighborhoods for several reasons.
First, the reconstruction of Rotterdam Centraal Station, which began in 2004, is expected to handle 320,000 passengers per day by 2025. This significant investment in infrastructure enhances the area's attractiveness, making it a more desirable place to live and work, which naturally drives up property values.
Additionally, similar urban redevelopment projects in other cities have shown that such developments lead to substantial increases in property prices. For example, Amsterdam's Jordaan district saw increased demand and property values due to its historic charm combined with modern amenities.
Moreover, real estate agencies have predicted that property values will rise due to the district's expansion. In Rotterdam's Katendrecht area, ongoing urban renewal projects and its growing reputation as a cultural hotspot are likely to push prices higher.
Furthermore, the increased demand for residential and commercial spaces in the Rotterdam Central District is a clear indicator of its growing popularity. This demand is expected to drive up property prices in adjacent neighborhoods.
Finally, the municipal council's plan to significantly increase the stock of student housing in Rotterdam by 2025 highlights the district's role in economic growth and urban development. This expansion will attract more students and professionals, increasing demand for housing and driving up property prices.
Sources: Wikipedia, Rotterdam Info, Rotterdam Style
16) Short-term rental demand will rise, increasing yields in tourist-friendly areas
In recent years, Rotterdam has seen a noticeable increase in the number of tourists visiting the city. Back in 2023, the city experienced a significant rise in visitors, which naturally led to a higher demand for short-term rentals. This trend continued into 2024, with a 19% increase in guests, particularly from international visitors.
Moreover, the short-term rental industry has been evolving with new strategies like dynamic pricing and upsells, which have proven successful even in challenging markets. This approach has helped operators generate additional revenue, suggesting that similar strategies could boost yields in Rotterdam's tourist-friendly neighborhoods.
Additionally, the market for short-term rentals is shifting towards larger and more unique properties, which are becoming increasingly popular. This shift is driven by travelers seeking personalized and flexible accommodation options, a trend that has been growing since 2024. As a result, the number of short-term rental listings on platforms like Airbnb has been on the rise.
Sources: CBS, Enso Connect, Road Genius
17) Demand for larger rental units in Rotterdam will grow as more families settle there
In recent years, Rotterdam has seen a steady increase in its population. This growth naturally leads to a higher demand for housing, including larger rental units, as more people move into the city.
Additionally, the city has become a hub for international companies, such as LyondellBasell, which have established their European headquarters there. This attracts professionals and their families, who will need housing, further driving the demand for larger rental units.
Moreover, there is a noticeable trend of families preferring urban living due to the amenities and services cities offer. This preference is likely to contribute to an increase in demand for larger rental units in Rotterdam.
Families are also moving from rural areas to urban centers like Rotterdam for better job opportunities and access to services. This migration trend supports the idea that more families will be settling in Rotterdam, thereby increasing the demand for larger rental units.
Sources: Rotterdam 360, LyondellBasell, Rabobank
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.