Amsterdam Housing and Brexit Refugees | Financial Buzz

Amsterdam Housing and Brexit Refugees

For people exiting London with eyes set on Amsterdam, their relocation may not be smooth after all. Residences near the picturesque waterfront are rarely for sale, and prices are astronomical. To top it all, the Netherlands city has only 1,000 houses and a few apartments available in the market.

Demand to go up

Locals have already raised an alarm. Their fears are justified. The city has been selected for European Medicines Agency. The city authorities are trying to attract fintech companies and banks to move their regional operations from their present base in London to Amsterdam. This will result in an influx of thousands of people. Property prices are at present already hitting new peaks. According to Sven Heinen, the chairman of MVA, the real estate association of Amsterdam, the market is already super-heated. Demand is now much more than the supply. He believes with the advent of Brexit, prices can move only north. The third quarter of 2017 saw Amsterdam home prices spike 17 percent compared to the identical period in 2016. The average price of a property is now 378,000 euros compared to 265,000 euros in 2008 prior to the financial crisis which led to the crash of property prices.

The cosmopolitan part of Amsterdam, lying north of River IJ and the Zuidoost, the supply is a meager 1,244 homes. Heinen says even if half of the people working in a large company wants to purchase properties in the city, it will be exhausted. There are a number of big companies relocating to the Dutch capital city. These include Royal Bank of Scotland, Radix Trading LLC, and Quantlab. These three companies are expected to employ around a thousand people within three years of starting operations.

Company personnel influx

Large companies like EMA has ecosystems around them. These ecosystems consist of around a thousand companies. The list includes drug manufacturers and a number of assorted medical firms which prefers to be near to the company so that talks are better facilitated. Amsterdam city is in discussion with 80 companies which are interested to relocate their headquarters or open a branch office in the city.

According to city plans, Amsterdam has envisioned an addition of 50,000 homes by 2025. This scenario was made prior to Brexit.  High-end properties will constitute 20 percent and mid-level will make up 40 percent. Social housing will make up the rest.