Amsterdam property market draws new money

There are plenty of reasons Amsterdam is consistently ranked as one of the world’s best places to live. A boat tour through Amsterdam on a wooden river launch will take you on a gentle journey through the Dutch capital’s tree-lined canals, past the stone-fronted mansions and decorative brick facades from the 19th century.

Last year, 143 foreign firms made the move to the Dutch capital and its surrounding areas. English is widely spoken, perhaps more so than in any other continental European capital. Like Dublin and Berlin, Amsterdam also enjoys the favours of the tech industry; Uber, Netflix and Amazon all have headquarters in the city.

Property prices in Amsterdam have finally surpassed their height before the 2008 Global Financial Crisis, rising 25 per cent since 2013. Figures from CBS, the national statistics office, show that the average asking price for a home in Amsterdam is now €506,000 (US$623,558). Tiny flats in the 19th century areas west and east of the old city, districts once considered beyond the pale, are changing hands for prices nearing €400,000.

Demand is rising, but supply is not keeping pace, thanks to careful price control mechanisms. So-called social housing is a dominant factor. Some 60 per cent of the city’s housing stock is rent-controlled, comprising homes with a rent of up to €710 a month.

This squeeze on what are known as “free sector” homes – flats outside the social sector – means that teachers, policemen and nurses are being pushed out. Developers have therefore been given the green light to build large complexes of small flats aimed at young professionals, complete with gyms, cafes and state-of-the-art Wi-fi – often in prime locations.

“We want to create a mixed city, where poor and rich live side by side and that is a deliberate part of our policy,” said Lex Brans, the city’s director of real estate marketing. “We don’t want homes where rents are too high. Amsterdam must remain an inclusive city.”