When Will Rental Prices Rise Again?
Discover the factors influencing rental price increases and when you might expect them to rise.
Rental prices in the private sector experienced a decline during the last half of 2020. In the final quarter, there was even a decrease of a few percentage points compared to the previous year. However, it's important to note that the decline in rental prices varied across different regions, with major cities like Amsterdam experiencing the steepest declines. In Amsterdam, this decrease in rental prices began around mid-2019. Despite these decreases, the housing market remains tight, and there is now an upward trend in rental prices. By the second quarter of 2021, rental prices in the private sector have started to rise again. However, there are regional and property-specific differences in this increase.
Average Rental Price Increase
Rental prices have not increased across all of the Netherlands, although the average trend shows a rise in prices. Woonhuis (single-family house) rental prices have increased by more than 5% compared to the previous year. For apartments, this increase is around 6% over the same period. These percentages are calculated by organizations like the NVM, a real estate brokers association.
Stabilization and Slight Decrease
However, the increase is not uniform across the country, and regional differences exist. Cities such as Amsterdam, Almere, and Amstelveen, for example, have experienced stabilized rental prices compared to the first three months of 2021, and, in some cases, even a slight decrease when compared to the same period in 2020. In the province of Drenthe, rental prices have decreased in the second quarter of 2021 compared to the same period the previous year.
Sharp Increases in Rental Prices
Several other major cities have already seen increases in rental prices. These include cities such as Utrecht, Rotterdam, The Hague, Haarlem, and Eindhoven. Rotterdam, in particular, stands out with a more than 25% increase in rental prices. However, this extreme increase is partly attributed to a luxury housing complex that has driven up average rental prices.
Faster Rental Price Increases for New Construction
In addition to regional differences, there is also a distinction between how rental prices have increased for new construction and existing properties. Rental prices for new houses have risen more quickly than those for existing homes and apartments. Furthermore, in highly urban areas, rental prices have not increased as significantly compared to less urban areas. There are also differences in the rise of rental prices concerning furnished, semi-furnished, and unfurnished properties.
Furnished properties have generally seen a stabilization or slight decrease in rental prices. This could be attributed to reduced demand from expats, a group that typically rents furnished properties for temporary stays. The majority of properties available for rent are typically unfurnished.
Housing Market Shortages
Despite fluctuations in rental prices, housing market shortages persist. Demand for housing continues to outstrip supply, and this imbalance has implications for both the purchase and rental markets. With increased demand, particularly from expats, the upward trajectory of rental prices is likely to continue. Expats, who often have temporary housing needs, will increasingly contribute to the demand for rental properties in urban areas. The downward trend in prices has been halted, paving the way for further price increases.
Renting Out a Property
Given the high rental prices in the private sector and the expectation of future increases, renting out a property can be an attractive option. Amstelland Makelaars specializes in renting out properties to expats in the Amsterdam and Amstelveen regions. This is ideal for property owners planning to travel abroad for a specific period or those who have purchased a new property but anticipate a delay in selling the old one. By renting out the property, owners can maintain a steady income while the property remains in their possession. Amstelland Makelaars provides a quick and efficient service for those interested in renting out their property.
Rapid Rental
When choosing to rent out a property, it is important to avoid leaving the property vacant for months, which results in a loss of income. Engaging an expert in property rentals, such as Amstelland Makelaars, can ensure rapid property exposure through various channels, leading to a quicker finding of a suitable tenant. We provide an excellent rental service to find reliable tenants. Additionally, we offer services for financial and technical management, meaning you won't have to worry about these aspects. Our expat-focused rental services come highly recommended, with many renowned companies seeking our services for accommodating their expat employees.
If you would like more information about renting out your property in the Amsterdam and Amstelveen regions, please feel free to contact Amstelland Makelaars. We are a member of the VBO branch association and the Association of Rental Agents Amsterdam (VVA) and are happy to assist you with our rental services, whether for temporary or long-term property rentals.
