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Tight supply behind increase in Amsterdam rental rates

DutchAmsterdam.nl — Tight supply in Amsterdam’s ‘free sector’ housing is the reason behind a 12 percent increase in rental prices over the past year.

An average house in the city currently rents at € 1777 a month, up from € 1133 a month last year, says rental realtor Direkt Wonen, marketleader in the sector.

Amsterdam warehouses turned into apartments
Entrepodok: erstwhile warehouses turned into apartments
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Country-wide, rental prices went down by 0,13 percent.

Despite the construction of entire new neighborhoods, such as IJburg — a series of artificial islands in the IJ estuary — Amsterdam continues to have a severe housing shortage.

Since demand is much higher than supply, Amsterdam’s housing market is subject to strict rental rules.

About a third of the rental property in Amsterdam is owned by private landlords. Housing corporations own the rest of the letting property — most it rent-controlled.

This includes any home or apartment with a rent below € 535,33. Anything above this limit is considered to be in the ‘free sector’ in which rental property is subject to fewer rules and regulations.

The maximum rental price of houses is laid down by law in the ‘home points system.’ On the basis of this points system — which takes into calculation such things as location, the condition of the building, the type of heating system, and even the size of the kitchen sink — a maximum permitted rental price is determined.

A recent change in this points system has caused a number of homes in the free sector to end up with points in the 122 to 142 range, a middle segment that – just like rent-controlled housing — is subject to city regulations. The rental prices € 535,33 and € 631,73 fall below the mortgage costs. Therefore owners would rather sell than put the property up for rent.

According to Pararius.nl, Holland’s most expensive rental property in found in Amsterdam Center and in the posh Amsterdam Oud-Zuid district — with monthly rental rates of € 21 per square meter.

The average monthly rental paid in Amsterdam is € 19,79 per square meter.

The lowest rental rates in the Netherlands are found in Rotterdam, where people pay an average monthly rent of € 13,55 per square meter.

• See also: Another sharp rise in Amsterdam room rental rates

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Latest minor update: Sep. 25, 2011    
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