Expats pushing private sector rents; Commercial rents also rising
Rents in the private sector increased by 6.7 percent in the first quarter compared to the same quarter last year, housing platform Pararius reports. In the first quarter of 2021, new tenants paid an average of 17.18 euros per square meter, NOS reports.
Rents in the free sector fell in the coronavirus pandemic because fewer expats could come to the Netherlands. "Expats are now completely back on the rental market, especially in the Randstad," said Pararius director Jasper de Groot. "Before corona, we had about 50,000 viewing requests from expats every month. Now there are over 100,000. So it more than doubled. There is a shortage of workers, and companies are doing their best to attract expats."
Pararius works with three delivery forms - furnished, upholstered (floor covering and curtains), and bare. Rents for upholstered homes increased 9.1 percent to 16.69 euros per square meter. Furnished homes became 6.1 percent more expensive and now cost 19.82 euros per square meter on average. And rents for bare homes rose 5.4 percent to 14.31 euros.
Groningen was the only province where private sector rents did not increase but remained stable at 15.31 euros per square meter. Rents are cheapest in Drenthe at 10.96 euros and most expensive in Noord-Holland at 21.75 euros. The high rents in Noord-Holland are mainly due to Amsterdam, where tenants pay an average of 24.29 euros per square meter.
Private sector rents are pushed by how few homes there are in this sector, De Groot said. "This sector remains far too small. Over 33 percent of the Dutch housing stock consists of social rental homes, compared to only 7 percent for the private sector." The government's attempts to keep investors out of this sector with policies ensuring that owner-occupied homes aren't bought for rent is not helping, he said.
Commercial rents are also shooting up, real estate advisors Colliers and Savills told BNR. Rents for shops and other commercial spaces are expected to increase by 6 percent or more in the coming period, primarily due to inflation. Most contracts state that rents increase annually with the inflation, Madeline Buijs of Colliers said to the broadcaster. "In March, we saw 9.7 percent inflation. When you start a new round on your lease, you can be confronted with those kinds of rent increases."
Savallis expects that the rising inflation "will have repercussions on current leases in the short term." Service costs are also rising due to high energy prices, among other things.
Retailers' association InRetail receives many questions from retailers who need to renew their leases. "We know stories of cooperative landlords who keep the price the same and also stories about significant rent increases," the association said to BNR. "It is, of course, justified to enter into a discussion in the event of an unreasonable rent increase. A landlord also benefits from having his property occupied instead of vacant. So it is in everyone's interest to reach an acceptable agreement that keeps shopping streets vital."