Despite the slight decrease on a national level, Pararius also recorded significant price increases, especially in a few large and medium-sized cities. The average square meter price rose the fastest in The Hague, by 6.4 percent compared to the previous year. That amounts to 18.19 euros per square meter. Rents were 5.7 percent higher in Amsterdam and the price per square meter was the highest at 25.68 euros. Of the fifteen largest cities, there was only a decrease in Nijmegen (1.2 percent) and Groningen (0.9 percent).
Jasper de Groot, director of Pararius, states that the increase is mainly due to tightness in the rental market. According to him, this is partly caused by the bill by Minister Hugo de Jonge (Housing and Spatial Planning) that sets a maximum price in the free rent. As a result, more than 327,000 homes from the free rental segment would revert to the cheaper social rental sector. As a result, many tenants would not be eligible for those homes because their incomes are too high.
Landlords would therefore sell their rental properties as a precaution. ‘These homes then return to the market for the higher incomes, so that the middle incomes again remain sidelined,’ says De Groot.
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