TENANTS

Tag: rent development

City Estate > rent development
06sep

Rent increase not this small for years

The increase in housing rents in the Netherlands has not been this small since 1960. Housing rents increased by an average of 0.8% in the month of July 2021 compared to the month of July in 2020, CBS figures show. The rental price of homes in the free sector rose by an average of 2.2% compared with 0.3% for social rental homes.

The NIS cites the (temporary) legislation regarding raising the rent as the reason. Because of the corona crisis, as of July 1, as a landlord of houses in the social sector you are not allowed to increase the rent. For the free sector, you may not increase the rent of your properties by more than 1% above inflation for the next three years. This legislation only applies to current rental contracts.

When new tenants moved in, the average rent for a property increased 7.2% in July 2021 compared with 9.5% in July 2020.

The extent of the increase varies by city and province. For example, the largest increase was seen in the province of Overijssel with an average of 1.4%. In Friesland, rents even decreased slightly, between 0.1% and 0.4%. Of the large cities, Utrecht had the largest increase (1.6%) and The Hague the smallest (0.8%).

As you read above, determining the rent depends on many different factors, including government policy. City Estate is specialized in renting and managing residential properties throughout the Netherlands. Are you curious about what rental price you can and may ask for your house? We give you free and non-committal rent advice. This advice is based on our experience and the current market conditions. So you know in advance what a market-level rent is.

23Jul

Free sector rents to fall further in Q2 2021

The average square meter price of rental properties in the freehold sector fell in the second quarter of 2021. Compared to the same period last year, rental prices fell by 2%. The average square meter price per month came to €16.37 this quarter. According to Pararius' latest figures, it appears that this is the fourth quarter in a row in which a percentage decline has been measured.

In the four major cities in the Netherlands (Amsterdam, The Hague, Eindhoven and Rotterdam), average rents decreased in the second quarter of 2021. In the city of Utrecht, rents remained the same compared to last year. In Amsterdam, prices have been falling for four quarters in a row now. This decrease is 6.8% compared to a year ago. Not only in the big cities was there a price decrease. Also in many medium-sized cities prices have fallen, Pararius concludes.

Expats

The drop in prices has several causes, including the absence of expats due to COVID-19. The absence of expats is especially noticeable in the larger cities in the Netherlands, where rental properties in the higher segment remained vacant longer. By reducing the rent slightly, you reach a wider target group and the vacancy costs can be limited. This development has had a great impact on rental prices in the big cities. Right now, the expat market is picking up. As more and more people have been vaccinated, companies want more employee involvement again. Similarly, more and more people are working in the office. The Netherlands is attracting expats again but whether it will return to the old level as before remains to be seen.

Tightness in the housing market

There is still a significant housing shortage in the Netherlands. By 2021, the shortage has decreased slightly due to higher construction output and lower demographic growth. Currently, the focus is mainly on building social rental housing. In the Netherlands, the share of social rental housing is already considerably high at 33%. The share of free sector rental housing lags behind at 7%. While there is a high demand for middle segment rentals. Thus, more should be invested in increasing the free sector rental housing. This is confirmed by sources such as De Nederlandsche Bank, the Central Planning Bureau and OECD.

Average square meter price
per month by city

 

City ofPrice per m² per month
National average€16,37
Almere€14,55
Amersfoort€14,40
Amstelveen€17,62
Amsterdam€21,53
Apeldoorn€11,58
Arnhem€12,34
Bergen op Zoom€12,-
Breda€14,35
Delft€15,53
Den Bosch€13,76
The Hague€16,06
Deventer€10,76
Dordrecht€12,68
Eindhoven€14,13
Enschede€11,24
Groningen€14,73
Haarlem€18,18
Hilversum€15,72
Leeuwarden€10,23
Leiden€17,43
Lelystad€14,26
Maastricht€13,73
Nijmegen€14,28
Rotterdam€15,58
Schiedam€13,91
Tilburg€13,38
Utrecht€17,81

 

21apr

Free sector rents to fall again in Q1 2021

The latest figures from housing platform Pararius show that the average national rental price of homes in the free sector has fallen by 2.4 percent. The average price per square meter now stands at €16.34 per month. The average rent has fallen less sharply compared to the fourth quarter of 2020, when the decline was 3.7 percent

Delivery forms

In the first quarter of 2021, the average price per square meter for a furnished house was €18.23 per month in the free sector. That a difference of -6.7 percent from a year earlier. The price of unfurnished housing fell 3.2 percent last quarter to €15.48 per square meter per month. The average rental price of a bare rental home rose 2 percent last quarter to €12.42 per square meter per month.

Developments in the five major cities

Pararius' figures show that for the first time in all five major cities there has been a drop in prices. In the first quarter of 2021, the average rent in Utrecht fell by 0.7% to €17.78 per square meter per month. In Amsterdam, the average rent dropped by 7.4% to €21.76 per square meter per month. In The Hague, the average rent dropped 3.5% to €15.95 per square meter per month. In Eindhoven, the average rent dropped 2.4% to €14.08 per square meter per month. In Rotterdam, the average rent decreased by 7.8% compared to Q1 2020 to an average square meter price of €15.20 per month.

Developments in other cities

Other cities present a mixed picture. In many cities, rents fell last quarter with percentages between 11.5% for rental properties in Alkmaar and 4.4% for rental properties in Schiedam. There are also cities where the average square meter price rose. These include Amersfoort (+17.2%), Apeldoorn (+5%), Bergen op Zoom (+5.9%), Enschede (+6.6%) and Leeuwarden (+7.2%) Deventer (+3.5%), Groningen (+4%) and Tilburg (+3.1%).

Rent Advice

Do you want to (temporarily) rent out your house or do you have an investment in mind and are you curious about a realistic rental price? City Estate is the specialist in letting and managing residential properties. We give you free and non-committal rent advice. This advice is based on our experience and the current market conditions. This allows you to know in advance what a market-level rent is. Request rent advice without any obligation.

Source: Pararius.com

18jan

Free sector rents down in Q4 2020

The latest figures from housing platform Pararius show that for the first time in 6 years, the average national rental price of homes in the free sector has fallen. The average price per square meter now stands at €16.16 per month, which is 3.7% less than in the same quarter in 2019. Such a similar decline as now was last measured in the fourth quarter of 2012.

Delivery forms

The price of unfurnished rental housing fell 5.3 percent last quarter to €15.18 per square meter per month. For a bare rental home, new tenants paid €11.92 per square meter per month, 0.5 percent more than the same quarter of 2019. Furnished homes also decreased in price. With an average rent of €18.20, new tenants paid 7 percent less than in the same quarter a year earlier.

Developments in the five major cities

Developments in the Netherlands' five major cities (Amsterdam, The Hague, Eindhoven, Rotterdam and Utrecht) are often a harbinger for the rest of the country. After the crisis, housing prices in Amsterdam, for example, were the first to rise, followed by Rotterdam and The Hague. Only later did we also see rents in the free sector rise in the rest of the country. Now the same thing is happening the other way around. In Amsterdam, rental prices stagnated from the second quarter of 2019. In the rest of the Netherlands, this stagnation followed barely a year later (Q1 2020). Price declines were also observed first in Amsterdam and then followed at the national level.

Average rents in the free sector fell in eight of the 12 provinces. In Drenthe (-7.4%) North Holland (-6.3%), Groningen (-4.9%), Zeeland (-4.7%) and South Holland (-3.2%) prices fell by at least 3 percent. In Friesland (-2.6%), North Brabant (-2%) and Limburg (-1.9%) the price drop was slightly smaller.

Price trends by housing type

Apartment rents fell again in the fourth quarter of 2020. New tenants paid an average of €17.14 per square meter per month for an apartment, down 6.2 percent. Apartments are still by far the most expensive housing type to rent. For a single-family house, new tenants paid €12.36 per square meter per month (-1.8 percent). For a detached house, an average of €14.28 per square meter per month was paid. This is an increase of 3.9 percent.

More information? Click here for the full article on Pararius.

Source: Pararius.com

08nov

Free sector rents up over 10% in Q3 2020

Vastgoed Management Nederland (VGM NL) and the NVM report that rents in the free sector rose 10.2% in the third quarter of 2020.

According to the quarterly report by VGM NL and NVM, the key developments in the third quarter 2020 free sector rental housing market are:

  • The average (bare) rent per square meter was €10.06 (+8.3%) for residential houses and €14.42 (+7.4%) for apartments in Q3 2020;
  • In the furnished segment, the rent is €20.57 per square meter;
  • The rent for unfurnished housing is now €17.34 per square meter;
  • The average rent - free sector - in the third quarter 2020 was €1,142;
  • Regional differences of rent remain strong.

Average rent rises to €1,142

Nationwide, the average rental price for a residential house was €1,143 and for an apartment €1,141. The average square meter price for residential houses came in at €10.06 (+8.3%) and for apartments at €14.42 (+7.4%) in the third quarter of 2020.