Rental prices Eindhoven are rising rapidly
Rental prices in the Netherlands are increasing. Prices are rising rapidly, in Eindhoven in particular. In the past year, the rent has increased by no less than 9.7% in the ‘City of Light’. That is much more than in other large cities such as Amsterdam and The Hague.
For this research into the rental market in the Netherlands, the average rental prices of the first quarter of 2018 were compared with the rental prices of Q1 2019.
Eindhoven rental prices increase with 9.7%
According to an estimate by the CBS, the Dutch population grew by 104 thousand in 2018. Partly due to the increasing number of households, there is a shortage on the rental property market. Landlords can charge higher prices, which is reflected in the figures. Although the national average rent has increased by 4.9%, the rent in Eindhoven has increased by no less than 9.7%. Eindhoven sticks out when it comes to the national rent increase.
With an 8.6% increase, Rotterdam is a close second to Eindhoven. In addition, the rent in Utrecht increased by 7.6% in the past year and by 4.7% in The Hague. Rents in Amsterdam increased by only 3.6%.
Rental price Eindhoven comes close to the Randstad
The higher rents is caused by the increasing demand for rental properties. Because the demand has risen faster than the supply of houses, a scarcity has arisen in the rental market, to which landlords anticipate to.
Yet Eindhoven is still one of the cheapest cities when it comes to rent per square meter. With a square meter price of € 14.94, the Brabant city is below the Dutch average of € 16.33. Despite the rising rents, renting in Eindhoven is still cheaper than renting in the suburbs.
Amsterdam is still the most expensive: with € 23.28 per square meter, our capital is far above the average national rent. In comparison with Eindhoven, the square meter price in Amsterdam is even € 8.34 higher. Utrecht comes in second with a rent of € 17.27 per square meter. Followed by Rotterdam with € 16.29 and The Hague with € 15.96 per square meter.
The cause of the higher rents
De huurprijsstijging wordt veroorzaakt door de toenemende vraag naar huurwoningen. Doordat de vraag harder is gestegen dan het aanbod is er een schaarste ontstaan op de huurmarkt, waar verhuurders slim op inspelen.
Arnoud Snoeijer, General Manager at Stoit Groep in Eindhoven, notices that the increasing number of home seekers are no longer Dutch only but also expats. The number of expats is increasing rapdily, especially in Eindhoven and surrounding areas. They move to the ‘city of technology’ for work or education at the Technical University.
This group of tenants is looking for a property to excess on short notice and is therefore more willing to pay a little extra for a house.
Expats mostly are looking for ready-made furnished rental houses. The average rent for furnished homes is currently € 18.87. An upholstered home has an average rent of € 15.30 per square meter. You can also rent an empty house. The tenant then pays an average square meter price of € 11.50.
Surrounding areas of cities become increasingly popular
Due to the high rents in the big cities, the surrounding villages are becoming increasingly interesting. Tenants move out of the city in search of less expensive options. If tenants can have a larger house, more luxury and other facilities for the same price, then suddenly extra travel time is no longer a problem. The increasing demand for homes in surrounding municipalities is also causing an increase of rents here.
This is also noticeable in the realty. Snoeijer indicates that especially surrounding villages near Eindhoven such as Veldhoven, Nuenen, Waalre and Son are becoming increasingly popular for tenants. But also a city like Helmond, and in particular the Brandevoort district, is a place where tenants really would love to settle.
Future of the housing market
The scarcity on the housing market is at the top of the political agenda. This is apparent from agreements made by both the State, Eindhoven Area and the province. Before 2024, no less than 27,000 new homes will be built in Eindhoven. In Noord-Brabant the plan is to build 128,000 new homes before 2030.
These are all great plans to solve the high demand for living space, but whether it will be enough for a fast-growing city like Eindhoven that will be the question.