Netherlands sees lowest average rent increase since 2015

The average national rent increase in the second quarter of 2019 was the lowest since the second quarter of 2015. Rents in the Netherlands increased an average of 3.1 percent in the second quarter of this year, according to figures from Pararius. This clearly shows that the price increases are slowing down, the housing platform said, reports. 

Rent increases fell below 5 percent for the first time in 3.5 years in the last quarter of 2018. And that slowing down effect is continuing, according to Pararius.

There are major regional differences in the rent increases. The price increase in Amsterdam, which has relatively many rental properties on offer, was only 2.8 percent on average. The rent increase in Amsterdam has been low for several quarters. The average rent per square meter in the capital is still the highest in the country at 23.42 euros. 

According to Pararius, the Dutch capital had a dampening effect on the national average. If Amsterdam's rent increase is not included, the average national rent increased by 5.5 percent in the second quarter, not 3.1 percent. 

The other large cities also had relatively low rent increases in the second quarter - 4 percent in The Hague, 0.3 percent in Utrecht and 2.8 percent in Rotterdam. Eindhoven is an exception here, where rent increased 7.3 percent in the second quarter. Eindhoven tenants now pay an average of 14.73 euros per square meter. 

Breda saw a substantial rent increase of 10.7 percent to 13.88 euros per square meter on average. In Hilversum rents increased by an average of 11.1 percent to 15.81 euros per square meter. Cities like Dordrecht and Schiedam, which are considered cheaper alternatives to the more expensive Rotterdam, saw rent increases of 11.4 percent and 13.3 percent respectively. The average rent per square meter is now 12.74 euros in Dordrecht and 13.04 euros in Schiedam, compared to Rotterdam's 16.30 euros per square meter. 

Provinces where the rent increases started later, are currently still dealing with high increases. Flevoland saw the highest average increase at 22.5 percent, followed by Zeeland at 10.8 percent and Friesland at 9.6 percent.

The rental prices for single-family homes increased by 9.2 percent in the second quarter, and apartments saw a 1.7 percent increase. Tenants pay most per square meter for apartments at 17.78 euros on average. According to Pararius, this is because more people are interested in apartments - as they are smaller, they are still less expensive than single-family homes. Apartments are also more often located in expensive areas such as city centers.