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Pararius about rental prices: no huge risers, no high peaks

Published on 21-01-2020
Since the fourth quarter of 2018, price increases have remained below 5 percent each quarter, according to the latest figures from the Pararius housing platform. In the fourth quarter of 2019, rents rose by 4.8 percent to an average square meter price of € 16.77 per month compared to the same period a year earlier.

In the five largest cities (Amsterdam, Rotterdam, Utrecht, The Hague and Eindhoven), the price increase was even smaller: there, prices rose by no more than 3.4 percent compared to Q4 2018. In the first three quarters of 2019 large price increases were measured. For example, in the first quarter of 2019 the average rent in the free sector in Utrecht, Rotterdam and Eindhoven increased by at least 7.6 percent.

Absolute rental prices are further apart
With absolute rental prices, the four cities are further apart. With € 23.68 per square meter per month, Amsterdam is by far the most expensive. A free sector rental property in Utrecht - the second most expensive city on Pararius - is with an average square meter price of € 17.80 almost 6 euros cheaper than in Amsterdam. The prices between The Hague, Rotterdam and Eindhoven are less far apart: in The Hague, new tenants paid € 16.34 per square meter for a free sector rental property. In Rotterdam that was € 16.26. Eindhoven is the cheapest city of the G5: new tenants paid € 14.53 per square meter per month.
 
Amsterdam is pressing on a national rise
 The absolute rent is nationally a lot lower if Amsterdam is not taken into consideration. With an average rent of € 23.68 per square meter per month, Amsterdam is the most expensive city in the Netherlands. But Amsterdam (+ 3.1%) currently has a depressing effect on the national rent increase. If Amsterdam is not taken into account, the average national rent increase will be 5.3 percent. This shows that prices in the rest of the Netherlands are rising faster in percentage terms than in Amsterdam.

A few outliers
 A few outliers were also measured outside the Randstad. Prices in Bussum rose the fastest: new tenants paid € 15.49 in the fourth quarter of 2019, more than 14 percent more than the fourth quarter of 2018. An increase of 14 percent was also recorded in Amersfoort. New tenants paid € 13.25 there.

In Apeldoorn, new tenants paid a square meter price of € 10.72, about 12 percent more than the fourth quarter of 2018. Erik Keizer from real estate agency Domica Apeldoorn notes that there is now more demand from the Randstad or other larger cities such as Arnhem and Amersfoort. “These house seekers are going to look further and Apeldoorn is in a strategically attractive location compared to other medium-sized cities. Starters and young couples also start renting more often because they are currently unable to buy. This pushes up the asking price of free sector rental properties in Apeldoorn. "

No excessive price increases
 For several quarters in a row, the housing market appears to have entered calmer waters: no huge risers, no high peaks. "The price increases that we are now measuring are not excessively high," says Jasper de Groot, director of Pararius. "For comparison: the average national price increase in the free rental sector does not exceed the maximum possible price increase in the social rental sector."

Rental prices of social rental housing for current tenants may, according to the law, increase annually by a maximum of 4.1 to 5.6 percent, depending on the income of the tenant. From 1 July 2020, these percentages have been set at 5.1 percent to 6.6 percent. "The free sector is still under that," says De Groot. The free rental sector is also growing less rapidly compared to the owner-occupied market. The prices of owner-occupied homes in the Netherlands rose by 8% in the last quarter of 2019 compared to the same quarter a year earlier. However, the problems in the free rental market sector have not yet been solved. "The demand for housing is not decreasing and the supply is not increasing fast enough," explains Jasper de Groot.
 
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