Thursday 28 October 2021

Private sector rents drop for second quarter, bigger cities lead the way


Rents for new contracts in the private, or non-rent controlled sector, continued to go down during the final three months of 2020, according to new figures from housing platform Pararius.

The decline has been boosted by the collapse of tourism and the fact new expats are not arriving, but rent levels had already reached a maximum before the coronavirus pandemic started, says Pararius director Jasper de Groot.

‘Prices are simply high,’ De Groot said. ‘Renting in the private sector remains much more expensive than buying.’

The maximum rent in the rent-controlled sector is currently €752.33, but strict income requirements apply. Some 33% of the Dutch housing stock is social housing, and just 7% private or free sector.

Despite the decline, Amsterdam still tops the list of rental prices, with a city centre rate of €23.29 per square metre per month, Pararius figures show. That means a 65 square meter flat in the city centre should cost around €1,510 for a new tenancy.

Rents have also dropped in The Hague, Rotterdam, Utrecht and Eindhoven, Pararius said.

Research published last month by the International Community Advisory Platform found that 53% of international workers were paying more than €1,200 a month in rent, but just 30% said they could actually afford to pay so much.

In total, 55% of the respondents said were looking to buy a home, with 49% saying it would be cheaper than renting. Almost 1,700 people with 110 different nationalities took part in the survey.

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