The average square-metre price of rental properties in the Dutch unregulated housing sector fell by 2.4 percent in the first quarter of 2021, compared to a year ago, according to figures from rental website Pararius
The company noted that it was the first time prices have fallen in the five largest cities in the Netherlands. New tenants in the Netherlands are now paying €16.34 per square metre per month.
Rents in the capital Amsterdam have been dropping since the second quarter of 2020 and this price decrease continues at the same rate: new tenants paid 7.4 percent less in the past quarter than one year ago. A rental property in the unregulated sector costs an average of €21.76 per square metre per month in the capital. Such a large percentage decrease in price has not been measured since Pararius first began monitoring rents in Q1 2011. Pararius said that the square-metre price in Amsterdam has not been this low since Q3 2015.
Tom Booij, owner of Booij real estate, indicates that furnished apartments, particularly in the city centre and Amsterdam Zuid districts, are no longer rented out as quickly as they were one year ago. “Our rentals on offer tend to be more expensive, centrally located properties with a lot of room. We’re noticing that since COVID-19, there’s a decreased demand from international customers such as expats and companies. If rental properties remain vacant for a longer period of time because it’s more difficult to rent them out, then it makes sense that the prices are lowered by the landlord.”
Pararius broke down the results by area. In The Hague, the average rent for a property in the unregulated sector fell by 3.5 percent to € 15.95 per square metre per month. Prices in Eindhoven dropped less drastically: in the first quarter of 2021 the average rent fell by 2.4 percent to € 14.08 per square metre per month. Price developments in Rotterdam are comparable to Amsterdam: compared to the first quarter of 2020, the average square-metre price decreased by 7.8 percent. A rental property in the unregulated sector cost €15.20 per square metre on average. Within certain districts, both the rents and the ratio between price increases and decreases still diverge.
The Netherlands has a total of 12 provinces. In Zuid-Holland, where popular cities such as Rotterdam and The Hague are located, rentals fell by 3.5 percent. New tenants paid an average of €15.34 per square metre per month in the first quarter of 2021. In Limburg, the average rent in the past quarter was €11.39, a percentage price decrease of 1 percent, compared to the same quarter a year earlier. Limburg is one of the less expensive provinces of the Netherlands.
The decline in prices in the largest cities can be linked to the temporary absence of expats due to COVID-19. Amsterdam, Rotterdam, The Hague and Eindhoven are all cities where many expats settle.
Jasper de Groot, CEO of Pararius, said: “Expats generally have a lot more to spend than the average Dutch tenant and they mainly rent properties in the highest segment. If the expats stay away, then those properties will remain vacant. In order to avoid this, expat properties are being offered at a lower rental price.”
This post has originally been featured in Property Wire.