Growth
Amsterdam has 854.000 residencies in 2018 (source CBS). The expectancy is that Amsterdam will have 1million residencies in 2030. This is because of the attraction factor of the city. The average growth in residential property will grow 3/4th in bigger municipalities (CBS). Migration in 2017 grew the population by 11.500 properties. Roughly 4 out of 5 are people who migrated to Amsterdam. Because of birth in 2017 it grew 5000 residencies. Big corporations also played a role in the growth of the city. Because of Brexit, New York Times is speculating that Amsterdam will be the Financial Capital of the world.
Shortage of houses.
In 2013 a house in Amsterdam would cost on an average base 224.400.00euro and in 2017 409.000 (source NVM). This is a revenue of 82%. What is causing this rapid price increase? One of the causes is because there are no new houses being build. Therefore, we see scarcity and rises in property value. From the living agenda of 2017 we can see that Amsterdam needs 250.000.00 new properties. In 2025 we will see a shortage of 60.546 houses in Metroolpool region Amsterdam (Source : woonagenda Amsterdam 2025). In 2018 Amsterdam started with building an extra 8639 properties. “But even with this we are not solving the need of places to live”, says Lawman Laurens Ivens (living). The municipality has then decided to add another 7500 new places in the new plans.
There is not enough space within the city of Amsterdam
With these new building tasks there is an inevitable space problem within the city. Building within the city takes longer and is more expensive then developing new locations outside the city. The municipality Amsterdam says: “Locations are scarce in Amsterdam. With searching for the right locations for new houses and projects we are focusing on the outside Amsterdam North and the outside the ring A-10” (Source: Municipality Amsterdam). Building in still open locations North of Amsterdam is there for necessary to cope with the immense demand for housing” Prof .ir . Tjeerd Dijkstra. According to Duco City (Alderman of spatial planning and housing) in the future, the Ring A-10 will increasingly be relegated to a city boulevard, so that extra construction on both sides is possible. Duco Stadig wants to create new housing locations in several areas beyond the Ring A-10 in currently agricultural areas.
Outside Areas
The land in the outside area is owned by professional market parties such as the municipality and real estate companies. Due to the dominant role of these players and the high demand for new homes in Amsterdam, the expectation is that agricultural land in the vicinity of the city will be built up in the future. Agricultural land now costs an average of 160 euros in this zone and the building land prices in Amsterdam North are between 500, - and 2.250, - per m2 (source: Land prices letter). The price difference between agricultural land and building land is therefore huge.
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