In recent years Amsterdam house prices have increased significantly to the point where buying in the city centre has become unaffordable for many.
The inner canal ring of Amsterdam is certainly known for its fine houses owned originally by wealthy merchants. De Gouden Bocht (Golden Ring) on Herengracht has always been the most prestigious area in Amsterdam and house price data even goes back to the early 17th century. Today, many of the inner canal houses are used only as commercial office space.
Amsterdam Property Value Map 2014-2018
The Amsterdam city council publishes a property map with data on house price sales going back to 2002. What is fascinating to see is the explosion of prices in the last 5 or 6 years.
We have put together an animation of the Amsterdam house sale prices from 2014 to 2018:
The colours on the map represent the property value sales price per square metre, with most of central Amsterdam moving to darker red/brown over time.
Even relatively cheaper areas in Amsterdam such as the western suburbs (Slotermeer, Osdorp), north Amsterdam and Bijlmer (south-east) have seen marked increases.
According to a 2019 survey by property consultancy Knight Frank, Amsterdam is one the least affordable global cities. House prices have increased by 64% in the last 5 years whilst household income has only gone up 4.4%.
The median price for a house/apartment in Amsterdam is currently around €450,000, compared to €300,000 in the Netherlands as a whole.
Why have Amsterdam property prices risen so dramatically?
- Amsterdam is a compact city with a limited stock of housing. Much of the property is rent-controlled social housing which means even less private sector housing. This skews the price movements more significantly.
- Amsterdam is a major tourist hub experiencing a record amount of visitors. There are thousands of Amsterdam house listings on AirBnB. This AirBnB effect has attracted international landlords to invest in Amsterdam property which has allegedly pushed up prices.
- Amsterdam has seen a Brexit impact (UK leaving the European Union) where companies and institutions such as the European Medicines Agency have relocated from London to Amsterdam bringing in staff. These arriving Brexpats have caused some very recent pressure on the housing market.
- In the Netherlands mortgage interest is tax deductible and this has probably pushed up property prices countrywide. However, this policy may be removed by the Dutch government in the long term.
- It’s not just Amsterdam. Worldwide policies by central banks and governments has created huge debt levels and significant liquidity in the financial markets. This has caused asset prices in many classes to rise. Nothing is cheap anymore!
While there are a few signs that the Dutch property market is slowing slightly, it may take a while for the roaring Amsterdam housing market to cool down.
Not surprisingly, even the Amsterdam rental market is experiencing record rents. It is difficult for any new arrivals to find housing, see our guide how to find a rental apartment in Amsterdam for a few tips.
We have heard plenty of stories of people selling up their small apartments in Amsterdam and buying a house in cheaper parts of the Netherlands such as Flevoland and Noord Brabant.
Amsterdam has joined the likes of many world cities – such as London, New York, Vancouver and Hong Kong – where house prices are slipping ever further away from the majority of residents.