Friday 07 May 2021

When it comes to house prices, Groningen is the new Amsterdam


When it comes to the rise in house prices, Groningen is the new Amsterdam, according to real estate data company Calcasa.

House prices rose by an average of 11.6% in the northern capital in the previous quarter – the biggest increase in all towns and cities where over 5,000 homes changed hands.

By contrast Amsterdam, where prices have consistently risen more than elsewhere, was bottom of the ranking with an average rise of 5.7%.

One reason for the rising popularity of Groningen is the coronavirus crisis, which has meant far more people are working at home, Calcasa said. ‘People are coming to realise that even after coronavirus, people will work more at home, and this means people can live further away from the office than before,’ the report said.

This picture is reinforced by the fact that the price of flats and houses have risen by similar amounts, unlike in previous years when flats rose faster in price.

Nevertheless, house prices in Amsterdam have gone up more than anywhere else in the country since reaching a low point after the 2008 credit crisis. Since the recovery started in 2013, house prices in the capital have risen 92%. In Utrecht the increase was 88% and in Rotterdam and The Hague 85% and 77% respectively.

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