The Netherlands’ court capital and seat of government is becoming a very popular place to live. Amsterdam households even want to pay more for a house than local residents. The significant price difference between the two cities gives Amsterdam’s property owners outbid other buyers by 180 euros per square meter. The danger is that households with greater purchasing power will squeeze existing residents with less spending power out of the city.
Investors are seizing the opportunity
Meanwhile, real estate investors have also discovered The Hague. They are buying large numbers of residential properties, resulting in a rapidly dwindling supply. Where two years ago 3,300 homes were for sale, this number has now plummeted to 1,150. As a result, house prices have risen by 17.3% in the past year and currently stand at 2,930 euros per square meter.
Peripheral municipalities now a viable alternative
People from The Hague are increasingly moving to peripheral municipalities due to the higher house prices in the city. For many years, house prices were higher there, but this has changed now. Places like Westland and Pijnacker-Nootdorp now offer a viable alternative for home seekers. 4 out of 10 home buyers are now leaving the city to these satellite towns. The expectation is that this number will rise further when house prices will increase even further in The Hague.
The Hague’s new builds miss the mark
In the last couple of years the municipality mainly chose to convert offices into residential properties in order to build more houses. In 2018, the emphasis will be on developing the Binckhorst area, where the city plans to build 5,000 apartments and studios. However, the focus on this type of housing does not reflect demand: 82% of growth in The Hague is accounted for by households that consist of two or more people. This mismatch means that families are mainly forced to consider locations outside the city. The new residential area RijswijkBuiten, for example, is already popular with house hunters from The Hague.