Further drop in free sector rents; Large cities feeling absence of expats
For the fourth quarter in a row, the average rent for a home in the private sector decreased, rental platform Pararius reported. The Netherlands' large cities in particular saw rents drop as the coronavirus pandemic prevented expats from coming to the country.
"As a result, rental properties in the higher segment in the large cities remained vacant," Pararius director Jasper de Groot said. "Landlords adjusted rents downwards in order to attract a wider target group and prevent vacancy."
Nationwide, new tenants on average paid 2 percent less per square meter in the second quarter than in the year before. The average rent per square meter was 16.37 euros in the second quarter.
In Amsterdam, rents decreased by 6.8 percent to 21.53 euros per square meter. In Rotterdam the decrease was 4.6 percent to 15.58 euros, in The Hague 0.9 percent to 16.06 euros. Utrecht's free sector rent remained stable at 17.81 euros per square meter.
This involves new leases for vacant homes. The rent on existing leases is increased once a year, usually in July.
The expat market is getting going again, but it is still too early to say what effect their return will have on Netherlands rents. "We will probably see that effect in the coming quarters," De Groot said.
The private sector rental market - which consists of homes with rents higher than 752.33 euros per month - accounts for about 7 percent of the Dutch housing market.