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7 Things Future Investors Should Know About The Netherlands

7 Things Future Investors Should Know About The Netherlands

If you want to preserve and increase capital by investing in European real estate, then it’s time to turn your attention to the Netherlands. Below, there are 7 of the most striking facts that will convince you to take a closer look at Dutch houses and apartments.

1. Young Dutch forced to rent a house
Since 2000, prices for houses and apartments in the Netherlands have jumped 53% and have now reached an average of €263,270. As a result, housing has become less affordable for many categories of the population. The thing is that the average annual income of a young couple not only does not allow you to buy a home but also take a mortgage. So, potential buyers of local real estate become ideal tenants.

2. Offers shortage
The most important factor that contributes to real estate prices in the Netherlands is the insufficient supply of properties. According to ABF Research, the total number of houses and apartments has not kept pace with the increase in the number of families since 2001. The government is systematically trying to reduce this number, and by 2017 it has reached 120,000 units. But still, there is still an imbalance between offers and demand.

3. Randstad region becomes a mecca for investors
Randstad is an agglomeration in the Netherlands that unites the four largest cities of the country –Amsterdam, Rotterdam, The Hague, and Utrecht. Official statistics show that since 2010, average rental rates in this region are well ahead of the national level.

4. The country’s population will grow
According to current forecasts, 326,650 new residents will appear in the Netherlands in the next five years. Analysts at Oxford Economics believe that in the Randstad region, the number of families will increase by 3% in the next five years and by 6% in the next 10 years. This means that housing demand will continue to rise.

5. More highly qualified specialists will appear
In the next 10 years, the number of new employees in the Randstad region should increase by 280,000. At the same time, half of the new vacancies will be created in the field of finance and business services. Experts believe that this will lead not only to an increase in demand for rental housing but also to an interest in luxury rented apartments.

6. In Randstad, an increase in the number of wealthy families is expected
In the next 10 years, analysts expect an increase in the number of high-income families in the region. At the same time, the number of people with very low incomes will decrease. This again indicates a further increase in the purchasing power of tenants.

7. Experts predict an increase in demand for private rental housing
The proportion of rental real estate in the Netherlands has been steadily increasing over the past five years, and the same goes for the Randstad region. In 2012, 15.5% of all housing units were rented in this region. Today, this figure has grown to 17.6%.

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