Coronavirus update: We’ve had a number of questions about the housing market since the coronavirus outbreak reached the Netherlands. From our point of view, we have continued to see that the housing marketing is alive and well. New, exciting properties, are becoming available every day. Still, the fact remains that there is a shortage of supply, and that real estate is a solid investment.

In addition, with interest rates still very low, it now makes more financial sense to have a mortgage versus renting.

At Burgemeester Vastgoed, we are still open for business. However, we are taking strict measures to ensure the safety of both you and us. Our introductory meetings will now be held online, and we will ensure that viewings are only private (no open house).

Original article here:

There’s increased scrutiny around the housing market in Amsterdam. Property prices have increased drastically over the past few years – and it has led some to believe that it is a bubble or that it is “overheated”.

I don’t believe this is the case.

It’s important to state that this isn’t an open and shut case. There are good arguments on both sides (UBS: Is a bubble, CPB: Not a bubble). But I tend to notice that those arguments suggesting there is a bubble forget one important element: Supply and demand.

Supply and demand

Only ~30% of the housing stock in Amsterdam is able to be on the property market. But the demand for housing in Amsterdam is still extremely high – and factors such as Brexit only seem to fuel this further.

Population will also play a part: Amsterdam will get the biggest increase in inhabitants in the Netherlands over the next 15 years, growing by 150 thousand people to over 1 million residents by 2035.

Another factor is that the government isn’t taking significant action to mitigate this, certainly not enough to alleviate the pressure. Ultimately – the government isn’t building enough houses.

Additionally, building new property in the Netherlands is not an overnight process. Permits take a long time for property developers, and the fact is that it is impossible for the buildings to go up as fast as they are required.

Buying versus renting

Interest rates at the moment are very favourable for buyers, and this means that in many cases it makes much more financial sense to invest in a property then to throw money away with rent. Many believe that having a mortgage is more expensive but this doesn’t have to be the case. Expat Mortgages shared three mortgage examples with us, which give you an idea of typical monthly costs (as of March 2020):

  • At €350,000 the monthly payment was €1,216.34.
  • At €500,000 the monthly payment was €1,737.62
  • At €750,000 the monthly payment was €2,606.43

You can see the breakdowns below.

The decision is yours

Buying a property is a huge decision, and not to be taken lightly. So, it’s important you consider this carefully. There is risk with any property purchase, and while my view is that Amsterdam is a stable and strong market, this is a decision you must take in your own time.

If you’re ready to buy then do get in touch to set up an introductory session.



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