Nothing new, but housing prices in Amsterdam are doing well. An understatement, because houses are being sold rapidly and in most cases also well beyond the asking price.
What happens if the offer decreases and the demand increases? Prices go up. Especially in Amsterdam that’s the case. The city is emerging nationally and internationally as well. Brexit is the main reason for this, bringing a lot of multinationals and finance institutions to Amsterdam instead of London. Investors also like their chances as house prices in Amsterdam went up with 21% in one year. See if you can reach those kind of returns on your investment on the stock exchange.
Higher asking prices and overbidding
Houses that are put up for sale don’t always have an asking price align with the sentiment on the market. With more interest candidates the chance on a sale above the asking price is apparent. This also has some risk. Potential buyers know that they have to make a bid above the asking price, but they’re usually not aware of the realistic market value of the house. With the result that a buyer gets a house that’s way too expensive or he/she doesn’t stand a chance. As a purchasing realtor in Amsterdam it’s our responsibility to prevent our client from paying too much by framing the realistic value of the house carefully. It speaks for itself that with a tender sale the chances of successfully buying a house rise drastically.
Make money on the Amsterdam housing market
One of the reasons prices are as high as they are at the moment is that private investors no longer settle for a savings interest of 0,15 percent. The first quarter alone the return on Amsterdam real estate was 3,6 percent. In 2014 houses were on sale for an average period of 100 days, this is down to 25 days. Fewer houses are sold at the moment, but that isn’t through a lack of interest, it’s simply a lack of offer. Too few houses are up for sale. Therefore buying a house in Amsterdam can be a good investment, both for the short- and the long term. As long as you make sure you buy the right object!
Until the Amsterdam housing market collapses again
House prices can’t always be going up with 21 percent. However, Amsterdam house prices still don’t compare with the prices in other capital cities around the world. In London the average house price is 636.777 pounds, e.g. € 729.412,-. This year the increasing trend has changed to a decreasing trend, if only for 1,5 percent. In Melbourne and Sydney house prices are rising for 20 years now. There’s no certainty that house prices continue to rise in our capital city, however a strong drop in house price isn’t very likely, due to the shortage of living place. Also the Amsterdam office market is doing well compared to other European cities.
Investors that want to invest in Amsterdam housing should gather as much information as they can before they do. Thorough knowledge on Amsterdam housing is vital in buying the right property. Are you considering buying property for investment? We will help you in getting the best possible investment in Amsterdam.