Netherlands: House Prices, Rents, and Rental Yields

This overview, as far as Amsterdam is concerned, is completely incorrect information. I am not exaggerating. In Amsterdam prices p/m2 are for the more expensive areas [old city centre and some surrounding regions] between 2500-5000 euro. Since almost without exception these are small to medium sized apartments [50-75 m2 average size for all pre WWII apartments] you can do the math. Apartments of extraordinary [over 120 m2] size or quality/location [a rather rare thing] can be more pricey - the highest price ever paid was 10.000 euro p/m2. This is exceptional though and in general only applies to old buildings [!]. Prices over 5000 euro p/m2 are rare. In 2006/2007 the average price for an apartment [whole of Amsterdam] rose to 250.000 euro. Newly build apartments are less in demand and therefore cheaper p/m2 than the old stock. They are considerably larger, though, but usually on the outskirts of the city. Rental prices for the majority of apartments are government controlled - the square meters are here the most important factor. Since the average older apartment is only 60 m2 [and many are smaller even] rents are relatively low and the owner [as was already stated on the website] has little or no control over that. Only 19 % of Amsterdam property is non-rental. The remaining 81 % for the most part is in the so-called 'social-sector': rents lower than approx. 600 euro [excl. utilities] p/month. Again: due to the small size mostly. For foreigners it is extremely difficult to find a rental apartment - the landlords are in general not even free to assign the apartments to the tenant of their choice. Cheap apartments are for low incomes. Unfortunately, there are almost no middle-class apartments for rent [prices between 700-1000 p/month.] They simply do not exist in the old stock. Income i.e. should be below the average Dutch yearly income of 30.000-35.000 euros gross p/year or you are not allowed to rent an apartment in the 'social-sector'. Which is the majority of all rental apartments. Of course resourceful entrepreneurs try to find ways to evade the strict regulations, sub-letting happens very often i.e., but be aware that you are breaking the law in such a case and will be evicted within a few weeks when caught. Amsterdam is currently doing a door-to-door investigating to check for this type of illegal tenants. So be aware. The purchase of real-estate by foreigners is also restricted. Non-eu citizens cannot buy as private individuals i.e. Strict rules apply. In short, for a foreigner the Amsterdam housing market is one of the most difficult ones you can encounter. Expect to pay high rental price [usually includes furniture etc. to make some rental price manipulations by the landlord possible] due to the very very limited availability of housing. The same applies to Utrecht and Den Haag. buying prices : go to www.funda.nl

Dear Robert, Thanks for your frank comment. It's some time since this research was done, and frankly, our methodology has improved since then. You are not the first person to have commented that these prices are on the high side. However, I would point out that our prices are for higher-end apartments in premier areas, so they tend to be well above average. This is described in our data sections, see http://www.globalpropertyguide.com/definitions/yields.htm

Dear Matthew, I understand your comment. I will be more concrete to underline my point of view. All the following applies to Amsterdam, but in general applies to all cities in the Netherlands.

As per July 1st, 2007 all rental apartments with a net rent over 622 euro p/month [so excluding utilities, furniture, service costs of whatever nature] are free from government restrictions [like having a certain income] and can be assigned freely by the landlord to anybody without restrictions. So this is the area where ex pats will operate in general.

The rental price can be anything, but a tenant has the right to demand to lower the rental price to the legally set maximum amount. This maximum price is the outcome of a so-called 'points-system' [which applies to ALL rental apartments, also the highest class !], where all facilities are worth a certain number of points. Like every m2 is 1 point, insulated glazing is 0.4 points p/m2, a bathtub and a shower together are 7 points, etc.

Here is the website where you can do the calculation [in Dutch; use a translation engine like Babelfish or Google] : http://www.huurders.info/Default.aspx?id=8362 Each point is currently worth 4,20 euro [as per July 1st, 2007].

Every year this value is adjusted by the government. Every tenant can count his points, and if he finds out he is paying too much, he can start a case against the landlord at a specialized department. This process is even free of charge and very very easy to start up - the Amsterdam City Council is focussed on guarding and servicing the less privileged. A very important point is that there is no difference between elite areas and the rest in this system. In order to find a liberated [above 622 Euro's p/month] rental apartment, it should have at least 80 m2 and ALL possible facilities like double glazing, fully insulated, private garden or large balcony, etc.. Simply to get the amount of points needed. Otherwise you will not get a permit to rent this apartment. Like I said, this type of larger apartments is quite rare in the more prestigious areas of the city, like the canals or around the Vondelpark. Most buildings are pre WWII [actually, pre-20th century] and consist of small apartments. Larger apartments are usually found in the less wanted areas and the suburbs. Ex pats are likely to be taken advantage of by their landlords because they are not aware of the local customs. They'll easily pay 1200 euros for an apartment which, first of all, they are not entitled to use [ because, i.e. : their income is above average, the apartment is part of the so-called 'social-sector reserve' (meaning an official rental price of below 622 euro?s p/month), a single person in a 3-room apartment is not allowed, a subletting situation i.e.] and second of all is only worth 350 euro's net p/month according to the points system. The purchase prices for elite apartments [like at the canals, in the historic center] are approx. 4000-6000 p/m2, with very little above that. Think of several dozens maximum, which are in general not often on the market. It is an awful situation which is not likely to change soon, but this is it. No exaggeration at all. Reason why a lot of foreign ex pats are operating in a grey illegal area, without even realizing it.

To the reviewer : Sorry to submit this comment in a fragmented state, but the reason is this : I kept getting the message that my submission contained foul language and therefore could not be saved. However, piece by piece I managed to submit my text, and finally found out what was seen as foul language : the word 's.o.c.i.a.list' [as in Amsterdam is a s.o.c.i.a.list city basically, focussed on guarding and ... etc.] I did not know s.o.c.i.a. list is a foul word ? All the best !

Dear Robert, I would like to ask you about The Hague property market, for example, prices per sq m, difference between an attached house and apartment price in different suburbs. I would appreciate your insight. Best regards, Katarina