What's Happening With The Dutch Housing Market?

The world is opening up again and international essential travel is now possible from all countries. We’ve seen an increased number of relocators come to The Netherlands over the last few months which is great since it’s proof that companies are growing and hiring again.

However, due to the restrictions of the last one and a half years, all new hires relocating to NL the past two months are now joined by relocators and students that have been on hold and additionally, by locals who are keen to move back to the cities; now that it’s opening up. The number of people flocking to the city and the housing market are therefore an estimated 3 times greater compared to the normal rush experienced at the end of the summer season.

This is not only causing a strain on business services like IN Amsterdam for BSN and Immigration matters and banks regarding account appointments, but also on the housing market. Before august, there was an average of 3000 available properties per week in the Amsterdam region, now it has declined to an average of 1200 per week.

This has led to several different things:

Increased Competition & Unaccepted Housing Offers

Twelve months ago, homes were ready to be picked up; but now, it’s more likely to have 10 others bidding on the same home. This situation has had a staggering impact on those with lower budgets (<€1600), single men, and people with pets.

Overbidding

‍Where overbidding on rental properties was rare before, now it seems like it’s done by more and more people to make their offers more competitive, which has led to more people doing it. The norm is now becoming 10-15% over the asking price, which drives the prices up ultimately. We are strongly against it. However, we’re picking up signals from the market that it cannot be ignored anymore.

Longer Supporting Times

‍It normally takes around two weeks for home searchers to secure a new home. However, with the increased competition, this timeline has unfortunately doubled or even tripled for some.

With all things given, this will have a profound impact on your employees’ experience for they are exposed to a more challenging market, whereas their colleagues might not share the same experiences. It also drives the need for temporary accommodation.

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What Can You Do?

We believe that together, we can ensure that your people have a great experience. There are several small things you can do that can have a positive impact on the process and their perception.

We’ve listed some below:

Co-Inform Them About The Market Conditions

‍Housing providers will do the very best they can to prep your new hires for the housing market. However, the need to build trust and a relationship in a short period of time is important. In addition to this, the information received from their colleagues who have had different experiences can sometimes be interpreted as conveying a directive and being biased because it would make their work easier. Which is why, it’s imperative to be advised on the challenges facing the housing market from an unbiased perspective; such as yourself.

Consider Temporary Accommodation Extensions‍

Especially for the challenging cases, here’s nothing that creates an urgency than knowing that you’re expected to leave your home without having another one. We’re aware that not everyone can receive an extension and will only be informed to request if it’s absolutely necessary. But, for challenging cases like hires with a lower budget, pets, or a lot of other criteria, it could help ease their transition and allow them to find a property that they enjoy living in.

Co-Promote The Different Metropolitan Areas‍

Even though the neighbouring metropolitan areas are also experiencing an increase, there is often more room and better prices in cities like Utrecht, Leiden, Den Haag and Rotterdam. The Netherlands is a small country and travel times to these areas are roughly thirty to forty-five minutes. By including the remote-work to that list, Amsterdam ends up being just another city. What we’re noticing is that by adding a lot of options to your talent’s housing pool, it increases their chances of finding something that fits their ideal or next-to-ideal living situation.

We are confident that the market will normalise closer to December, but until then all support no matter how small can have a big impact on your new employee’s experience. If you’d like more information on how we can help, please get in touch us or our housing partner, Expat Housing Network for all housing-related matters.

Tot ziens!