All information about buying a house and selling
in Amsterdam in the Corona era

Amsterdam housing market first quarter 2020; influence of Corona?

The housing market in Amsterdam was overstrained in the first quarter as we have rarely seen. Prices within the ring rose by 3% compared to the fourth quarter of 2019. The average overbid also rose in the same period from 5.7% to 6.4%! The issues surrounding Corona only started in the second half of March and therefore have not yet been reflected in the figures. The Corona virus therefore had no effect on house prices in Amsterdam in Q1. The mood on the housing market in the first two weeks of April is still very good! Click here for the first quarter figures 2020 for your own neighbourhood.

The Corona crisis did cause a rush of additional applications in the last three weeks. We are a sounding board for many of our clients when it comes to thinking about the expected developments in the Amsterdam housing market. The uncertainty about the timing of the next step in one's housing career has increased enormously. There are many people who have decided to bring the sale forward because the market is currently good. The future is by definition uncertain and therefore many clients choose to put their flat or house in Amsterdam on the market quickly.

We see a reduction in the number of seekers wanting to buy in Amsterdam. The uncertainty about their (own) company or flexible contract is leading some people to put their search on hold for the time being. We therefore see a certain drop in demand. However, the number of applicants per house was extremely high during the past quarter, so this correction should not directly hurt the market in 2020. In addition, active seekers are extremely motivated and have plenty of time for viewings. All in all, sentiment in mid-April is very good!

The housing market in Amsterdam was overstrained in the first quarter as we have rarely seen. Prices within the ring rose by 3% compared to the fourth quarter of 2019. The average overbid also rose in the same period from 5.7% to 6.4%! The issues surrounding Corona only started in the second half of March and therefore have not yet been reflected in the figures. The Corona virus therefore had no effect on house prices in Amsterdam in Q1. The mood on the housing market in the first two weeks of April is still very good!

The housing market in Amsterdam has a strong foundation consisting of three factors:

1. Amsterdam is a magnet for companies nationally and internationally and for young, well-educated people. The influx of new people (see graph) shows that the influx is accelerating.


2. There is a huge shortage of owner-occupied houses and this shortage is only increasing. Building production is not keeping up with the new influx, and according to the municipality's new standards, only 20% of building production is intended for sale. The rest of the production is allocated to social and medium-sized rented housing.


3. Mortgage interest rates are very low and despite the expectation that they will rise slightly in the coming period, they will still remain at historically low levels. As long as Southern Europe is in trouble and the financing deficit remains too high in relation to the GNP, the European Bank will have to keep interest rates low.

On balance, the expectation for the coming year of the Amsterdam housing market is that there will be a better balance between supply and demand as a result of reduced numbers of seekers and increased supply. The uncertain economic outlook plays a role primarily in the higher segment. The price segment below €750,000 will remain quite solid in 2020. We expect that the absolute top segment above €2,000,000 will be negatively affected by the Corona era.

We are here for you and we understand that there are many questions about buying or selling a home in Amsterdam. We have opened a special information line where we take the time to answer all your questions and to serve as a sounding board when considering what is wise in these market conditions. Many people have bought a new house and still have to sell their current one. The following questions may arise: