Thursday 18 August 2022

Rents are rising again, Eindhoven and Rotterdam lead the way


New tenants in the non-rent controlled sector are paying an average of 5.3% more for their rental homes than they would have done a year ago, according to research by Pararius, but the rise was a more modest 1.7% in Amsterdam.

Rents are now rising following a coronavirus-induced dip with the increase particularly noticeable in unfurnished properties, the housing platform’s research shows. The increase is the biggest since the 5.9% rise recorded in the third quarter of 2018. 

New tenants are now paying an average of €14.42 per square metre – around 20% up on the end of last year, for an unfurnished flat. The square metre price for a furnished home is nearing €20.

‘The increase is not a surprise because demand is high and the supply is low,’ said Pararius director Jasper de Groot. ‘That is when prices go up.’

The shortage of owner occupier housing is also helping to drive up rental prices, he said. ‘Lots of potential buyers have no where to go,’ he said. ‘They earn too much for social housing but not enough to buy.’

Just 7% of the Dutch housing stock is made up of non-rent controlled property, according to Pararius research. Housing with a maximum rental price of below €764 a month accounts for 33% and is restricted to low earners.

Prices rose across the Netherlands, with rises of 11.7% reported in Eindhoven, 9.7% in Rotterdam and 8.4% in Amstelveen. The arrival of new international workers in the second half of last year had increased demand, and therefore prices, De Groot said.

Amsterdam remains the most expensive Dutch city although rents in the capital rose by a modest 1.7%, boosting the average price of a 60 square metre home to €1,347 for new tenants. Rents rose 2.9% in Utrecht and 6.7% in The Hague.

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