By the Engel & Völkers Team
With its enchanting canals, rich artistic heritage and elaborate cycling paths, it’s no surprise Amsterdam often takes the cake as one of the world’s most livable cities. The capital may have risen to worldwide acclaim as early as the 17th century during the Dutch Golden Age, but Engel & Völkers’ most recent market report proves the city's heyday is yet to come.
According to the report, in the first quarter of 2018, residential property prices in Amsterdam rose by approximately 14 percent year-over-year, largely due to the increasingly scarce availability of on-the-market properties in the luxury real estate market.
“The demand for properties for sale in the top segment is currently twice as high as the level of supply,” said Barbara van der Grijp, managing partner of Engel & Völkers Amsterdam. “Rather than selling up, many homeowners are opting to rent out instead, while rentals are becoming an increasingly attractive option for investors, too.”
The most sought after locations in the city include its characteristic Canal Ring, Museum Quarter and Apollo Quarter. Along the most exclusive canals such as the Herengracht, Keizersgracht and Prinsengracht, residential properties sold for up to 8,900 euros per square meter or as much as 10.25 million euros—a price to pay to live in Amsterdam’s most historic quarters where its wealthy merchants and upper class once resided.
Even if you’re not a history buff, these highly desirable neighborhoods also offer close proximity to many of the city’s most famous sights. Families, expats and second homebuyers were reported to be particularly drawn to these areas where the Canal Ring and Apollo Quarter are close to the city center and the Museum Quarter’s Van Gogh Museum and Rijksmuseum host some the world’s most treasured art collections.
“Even though property prices in Amsterdam continue to rise, the overall cost of homes compared to cities like New York or Paris is still relatively moderate,” said Van der Grijp. Currently, international buyers, most notably from Germany and England, make up approximately 16 percent of homebuyers in Amsterdam’s luxury real estate market. Looking ahead, with the city’s attractive tax regulations enticing international companies to establish roots in the capital, Engel & Völkers sees demand from international buyers and luxury real estate property prices continuing to rise.