Decoding the current avarage house prices in Amsterdam
Buying a home in Amsterdam? The actual average house price is currently € 571 568, but what does that say?
As a certified purchase agent with over 23 years of experience, I know that when it comes to property prices, it’s essential to understand that prices can vary significantly from street to street, but how is that?
In Amsterdam, each neighbourhood has its own unique charm, character, and amenities, which can influence property values. But even within the neighbourhood prices can differ significantly. Certain streets are more desirable and more expensive per m2 price than other streets, so the average and current price per m2 of € 7 189, is not standard for all homes.
When it comes to determining property prices, several crucial factors come into play. Factors such as size, condition, layout, and renovations all significantly impact the value of a property. Additionally, even within the confines of a single neighbourhood, you may find a diverse range of properties on the same street, each possessing unique characteristics that contribute to price variations.
Therefore, relying solely on average prices may not provide an accurate representation of the dynamic real estate market. Evaluating the market value of each property individually is of utmost importance.
How About the future prices?
Predicting home prices in Amsterdam is a complex task influenced by numerous factors. While I don’t possess a magic ball, my expertise and knowledge of the market and recent sales are the basis of my advice.
Currently, the housing market in Amsterdam is extremely tight, with significantly more demand than supply. This has resulted in a competitive market for buyers. The demand for homes in Amsterdam continues to rise steadily, driven particularly by the city’s popularity. In Amsterdam, we only have 33% home ownership, so that explains a lot.
Over the past couple of years, we have been fortunate to benefit from remarkably low mortgage rates. However, it is encouraging to witness these rates gradually stabilizing towards more typical levels. As a result, it’s important to acknowledge that borrowing capacities may be slightly reduced due to the rise in mortgage rates, so it is always wise to visit a bank or a mortgage advisor and get your numbers clear.
It is crucial to emphasize that the housing shortage in the market continues to persist, driving sustained demand for available properties. The reality is that finding a desirable home remains a challenging task, as there are multiple interested buyers for every property available.
What now?
So, if you are considering purchasing a home in Amsterdam, I provide a tailored approach that considers your unique requirements, preferences, and budget. We do not work with multiple clients who have the same criteria, as we believe in avoiding competition among our clients, we will keep you safe and we work on a no-cure/no-pay base.
Rest assured, if you maintain a realistic view and are open to following our advice, we are committed to finding you an exceptional home where you can create lasting memories.
Call me today for a personalized consultation, and let’s embark on this exciting journey together!
The Energylabel
The Netherlands has been at the forefront of adopting policies and initiatives to reduce energy consumption and promote the use of renewable energy sources. One of these initiatives is the energy label, which provides information about the energy efficiency of a building to potential buyers or renters.
WHAT IS IT?
An ‘energielabel’ (Energy Performance Certificate – EPC) shows the energy efficiency of a property. The EPC also notes potential energy-saving measures for a property.
The label takes into account factors such as insulation, heating and cooling systems, ventilation, and renewable energy sources. The label is valid for 10 years and can be obtained through a certified energy advisor.
WHY DO I NEED IT?
When buying a home in the Netherlands, it is important to consider the energy efficiency of the property. This is where an energy label comes in – a certification that rates a property’s energy performance on a scale from A to G. The label is mandatory for all homes being sold or rented out.
Also, it can help you make an informed decision about the property you are considering. A higher rating means that the property is more energy efficient and will cost less to run, which can save you money on utility bills in the long run. It can also indicate that the property is more environmentally friendly, as it is using less energy and producing fewer greenhouse gas emissions.
REALLY, CAN IT SAVE ME MONEY?
Well, it is worth noting that the energy label is not a guarantee of energy efficiency, as it is based on theoretical calculations and does not take into account factors such as user behaviour. However, it can still be a useful tool for comparing properties and making informed choices.
HOW DO I GET IT?
First, look if your home already has an energy label at https://www.ep-online.nl/
The application is no longer completed online. You have to make an appointment with a certified energy adviser, that will visit your home. Make sure you have as much as relevant documents available when the advisor will visit your home. Documents about the house, drawings, pictures, receipts, if you have refurbished or upgraded the house than add the bills and any other relevant information you might have.
ARE THERE ANY EXEMPTIONS?
If you own a monument build, you may be relieved to know that you do not need an energy label. The reason for this exemption is that monument builds are considered to be part of our cultural heritage. They are protected by law to preserve their historical and cultural value. As a result, any structural changes or renovations to the building must be carried out with extreme care and in accordance with strict regulations.
For all other exemptions we recommend you to visit the website of the government (Dutch).
Any questions left? Give us a call!
Why Skimping on a Real Estate Agent Could Cost You Your Dream Home
Amsterdam's fickle property market is something of an enigma. It's not always easy to know where to start, whether that be finding the best people to work with, the location you'd like to live in, or knowing whether or not the home you have your eye on is worth the money.
It's true what they say - it's better to aim for quality the first time.
We all know that if you buy something cheap, it's likely to be poor quality and it'll break, wear out or not be fit for purpose. As a result, you'll need to buy a replacement, costing you more money in the long run. Well, the same applies to the housing market!
Why work with a real estate agent?
A certified and experienced real estate agent will help you to navigate prospective homes, and costs and advise you on the necessary steps so you can feel confident in the knowledge that you are making informed decisions when in unfamiliar territory. Despite the pandemic, the market in The Netherlands is hot right now; but making sure you have the right team behind you is essential. If you choose to team up with someone who's not particularly experienced within the Amsterdam real estate market, chances are you'll be selling yourself short - and nobody wants to be stuck with a home they want to get rid of!
Manage your expectations
In our article about managing expectations, we delve into the fact that the prices you see first day do not always align with the actual purchase price. Buying a home is the biggest investment most people will make in their lifetime. Unless you have unlimited funding, you need to be realistic about what it is you can afford because chances are, the price will be higher than what was advertised.
How does one calculate what's affordable?
If you are unsure about what you can afford, a mortgage advisor or bank can help you weigh up your income and expenditure to determine the most cost-effective solutions for you when it comes to purchasing your property. In the Netherlands, the purchase price can vary greatly from what you originally saw online. Your real estate agent will guide you through the effects that the valuation process will have on the property you are interested in.
Okay - so where do I start?!
From there, we can draw up a list of appropriate options to suit your needs. That being said, there is no point in purchasing a home that doesn't live up to the value of the property, so do proceed with caution and consult your real estate agent beforehand to do any background research.
Why work with a real estate agent?
Barry Burgemeester is a Dutch native. Originally hailing from Utrecht, he has worked for over 23 years in real estate in Amsterdam and his extensive knowledge of the area is uncontested.
Barry's background and expertise are invaluable to our expat clients, mainly because his wealth of experience within the Dutch market guarantees that he will be able to predict any potential issues or concerns you may have when introduced to this unfamiliar territory. Get in touch at info@burgemeestervastgoed.nl today!
