Rental prices fall in large Dutch cities… outside of the North

The average square meter price of rental homes in the private sector in the Netherlands rose by 2.4 percent in the second quarter of 2020, according to figures from rental website Pararius. But in Amsterdam, The Hague and Eindhoven there was a slight decrease in the average free sector rental price, for the first time in around a decade. As reported by the GIC.

So, that means that Groningen, Friesland, and Drenthe are bolstering the entire rental sector in the Netherlands! Unfortunately, this the price rise is likely due to exploitation of available space by unscrupulous landlords, and a several-years running chronic shortage.

In Groningen, which has so few affordable student rooms that incoming International students had to live in emergency tents last year, average rental prices rose by 6.2 percent. Good news to anyone paying upwards of 500 euros per month for a studio: you are not in the minority.

Price increases vary at provincial level. Square meter prices in Friesland rose by 4.8 percent, and along with Groningen showed the highest growth in the country. New tenants in these provinces paid € 9.98 and € 14.65 per square meter per month respectively. Friesland is the only Dutch province where the average square meter price does not exceed ten euros.

The percentage price increase remains “moderate” as expected. Since the third quarter of 2018, price increases haven’t exceeded 5 percent. Good then, as real-term wage growth in the Netherlands has stuck between 1.2 percent and 2.4 percent each year.

The average rental price in Amsterdam fell by 1.4 percent, in The Hague by 0.5 percent and in Eindhoven by 1.9 percent. In Rotterdam, the average rent increased by 0.2 percent to € 16.33 per square meter per month.

In Utrecht, the price increase was somewhat higher: new tenants paid 5.6 percent more than in the second quarter of 2019, € 17.81 per square meter per month.

In Overijssel (+ 2.7 percent), Gelderland (+ 2.6 percent), Limburg (+ 2.4 percent); North Brabant (+ 2.2 percent), and Utrecht (+ 2.7 percent), saw rises more in line with wage and goods inflation.

In the most expensive province in this list, Utrecht, new tenants paid € 16.01 per square meter per month last quarter. The average square meter price in Overijssel is more than five and a half euros lower: € 10.64.

Image by Alexas_Fotos from Pixabay