Amsterdam Housing Market: Home Prices Rise Slightly, Record Number of Transactions in Q1 2021

The housing market in Amsterdam was quite overheated in the first quarter of 2021. The change in the transfer tax prompted many first-time buyers to delay the closing of their apartment or house purchases made in late 2020 until 2021 in order to save 2% in transfer tax. The 0% transfer tax also brought many new buyers into the market who wanted to take advantage of this benefit. The number of transactions rose by 54% compared to Q1 2020, reaching 2,982!

Modest increase in prices per square meter in the Amsterdam housing market

We had expected the price per square meter to have risen sharply as well. This was not the case in the last quarter. The price per square meter rose to €6,331, an increase of just 0.7%. 

We do expect the price per square meter to rise significantly in the second quarter. We are now seeing more and more people interested in viewing properties, and homes and apartments on the market are being outbid at unprecedented prices.

Differences by neighborhood

In most neighborhoods, prices per square meter remained flat, but there are a few exceptions. In Noord, we recorded the largest price increase of 11.3%. Noord still has one of the lowest prices per square meter at €5,212. With a lower price per square meter, there is naturally more room for price increases. In Nieuwe West, prices per square meter rose by 9% (€4,791). In Oud Zuid, prices rose by another 2.5% to €8,326 per square meter, but what stands out is the stagnation in the Centrum district over the last period. Prices per square meter there actually fell by 2.5%!

Trends in the Amsterdam housing market

There is a strong trend toward living in the suburbs. Working from home has made people feel more comfortable living farther away from their workplace. At Amsterdam at Home Makelaars, we have a number of clients who are selling their homes in the city and moving to the Veluwe region. There has been a lot of media coverage on this topic, and there are real estate agents like Suzanne Thöne from vanstadnaarland.nl who are helping people navigate the decision-making and purchasing process!

Amsterdam Housing Market Forecast for the Entire Year of 2021

Much will depend on interest rate trends. We have been seeing a rise in the capital market for some time now, and this is expected to affect mortgage rates as well. A small increase will have little effect on prices, but if mortgage rates rise by more than 1%, this will have a dampening effect on the housing market in Amsterdam. We expect prices to rise in the second quarter. The rest of the year will be determined by interest rate trends. Structural demand for owner-occupied homes will remain strong, and the influx of new residents to Amsterdam will pick up again after the pandemic.

Would you like to know if you're ready to take the next step?

Our real estate agents are happy to serve as a sounding board for you. We can determine the current value of your home and help you make a decision. Feel free to contact us—we’re here to help!

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