Everything you need to know about the Amsterdam housing market

The current housing market in Amsterdam in 2022

Number of homes and apartments sold in the second quarter of 2022

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• Apartments: In the second quarter of 2022, 1,772 apartments were sold, a decrease of 16% compared to 2,108 apartments in the first quarter.
• Single family homes: In the second quarter of 2022, 302 single-family homes were sold, an increase of 18% compared to 256 apartments in the first quarter.

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Average selling price of houses and apartments

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• Apartments: In the second quarter of 2022, the average purchase price for an apartment was €602,474, 0.5% higher than in the first quarter. 
• Single family homes: In the second quarter of 2022, the average purchase price for a single-family home was €602,474, -22% lower than in the first quarter. 

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Overbidding is still standard in Amsterdam

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In 2022, an average of 7.3% more is paid than the asking price in Amsterdam so the trend of overbidding continues.

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Time on market remains below one month

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In the first half of 2022, a home in Amsterdam remained for sale for an average of 30 days. This very short listing time still indicates a serious shortage in supply on the Amsterdam housing market.

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Housing prices continue to rise and have been doing so since 2014

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Price per square meter in Amsterdam continues to rise and is heading towards 10,000 euro per square meter.

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The average price per square meter is highly dependent on each neighborhood in Amsterdam, so the location plays an important role in determining the value. In expensive neighborhoods such as Museumkwartier, Burgwallen, Grachtengordel and Weteringschans, the prices per square meter are already above 10,000 euros, while in the cheapest neighborhoods such as Holendrecht, Bijlmer and Gein they are still below 4,500 euros per square meter.

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The most expensive neighborhood in Amsterdam

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Diepenbrockbuurt in Amsterdam Zuid, with €2.48 million, has the highest average house value of all neighborhoods in Amsterdam and is also the most expensive district in all of the Netherlands. The most expensive house in Amsterdam for sale on funda.nl at the moment is also in that area at Diepenbrockstraat 5 (1077 VX) for 12.5 million euros.

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The cheapest neighborhood in Amsterdam

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Bijlmer is the cheapest district in Amsterdam with an average house price of 273.571 euros and an average price per square meter of 4,075 euros. The cheapest house in Amsterdam for sale on funda right now is also in that area at Kloekhorststraat 239 (1104 MN) for 199,000 euros for a 2 bedroom apartment of 43 m2.

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Is a real estate crash coming? When are house prices going to drop in Amsterdam?

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No one can predict the future with certainty. That said, most real estate experts and Dutch banks remain of the opinion that house prices will continue to rise because the demand for homes is still much greater than the supply. This gap is long term and structural and unlikely to close anytime soon. Now, it is true that a rise in mortgage rates can slow down growth and make future increases more soft. This is not a bad thing: better sustainable growth than overheated growth. 

Forecast and expectations from the real estate experts for 2022 and 2023:

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• ABNAmro forecasts a 15% increase for 2022 and a 2.5% increase for 2023.
• Rabobank forecasts a 16.1% increase for 2022 and a 4.5% increase for 2023.
• ING forecasts a 15% increase for 2022 and a 1% increase for 2023.

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Historical housing prices in Amsterdam

Over the long term, home prices in Amsterdam have experienced a strong upward trend. In the period between 1995 and 2020 then prices have increased by an average of 7.1% per year. 

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Two periods of a housing price decline in the last 25 years

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Last year, prices rose 12%, but this has certainly not always been the case in the past. In the last 25 years, there have only been a few years when the increase was more than 10% per year, and there have also been two periods of declines in house prices. 

There was a very small dip in 2002 that quickly recovered. But in 2008 the great housing crisis broke out as a direct result of the financial recession. The credit crunch forced the banks to impose much heavier requirements on granting of mortgages, which caused demand to collapse and prices to fall over a 5-year period.

Rent prices in Amsterdam

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The average rent in Amsterdam has also increased seriously in recent years with an average of 3% per year. In 2020, there was a decline in prices that continued in 2021 due to the corona virus. This was caused by an increase in the rental supply as fewer expats and tourists came to Amsterdam. To avoid vacancy, quite a few landlords lowered rents. 

This effect was short-lived and by 2022 with an increase in tourism and the expat market picking up, rents were soaring again. On average, the rent per square meter in Amsterdam is €24.2 (almost €2,000 per month for an 80 m2 apartment), about 40% higher than the Dutch average.

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Dutch housing market comparison: Amsterdam, Rotterdam, Groningen and Utrecht

Since home prices bottomed out in 2013 after the housing crisis, the prices across the Netherlands have been rising again year after year. So much so that since 2013, an average house in Amsterdam, Utrecht and Rotterdam has more than doubled in value. In Groningen, the increase has been slower to take off, but in the last two years, the price increase in Groningen has been higher than the national average with annual increases of more than 15%.

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(Data sources for the graphs: Land Registry, CBS, Pararius)

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