Rental transactions within the unfurnished rental segment fell by -3.4%in the first quarter of 2023 compared to the first quarter of 2022. The difference between apartments and houses is striking. Prices are falling for apartments, but remaining stable for houses. New-build rentals also saw a decrease in the first quarter compared to the first quarter of 2022. On an annual basis, the number of new-build homes rented has fallen by a significant -25% . This is the lowest number of transactions since 2019.
Dynamic mid-range
Striking is the decrease in the number of transactions in the mid-market segment, according to Sander Groot, chairman of VGM NL. The number of transactions for homes between €1,000 and €1,250 has risen by 38%compared to the first quarter of 2022, while rental transactions in the mid-market segment (€800 to €1000) have decreased by 4%. We are therefore seeing a shift from rental transactions from the lower to the higher price bracket.
Average rent decreased
For the third quarter in a row, the average rental price has decreased. In the first quarter of 2023, the rental price is 0.7%% lower than the average rental price compared to the last quarter of 2022. People who rented a new property in this first quarter paid an average of €14.61 per square metre.
The differences in rental prices between cities and the countryside remain large. In cities, tenants pay more per square metre, with an average of €17.08 compared to €11.07 in the countryside. In Amsterdam, the rental price per square metre is even higher, at €22.50.
In Friesland, the largest drop has occurred. In the first quarter, prices here fell by -5.4% (€10.95 per m2). Friesland is followed by Noord-Brabant, where a drop of -2.8% (€12.41 per m2) has taken place. The average lowest price per square metre is measured in Drenthe at €10.49.
In Flevoland, we see the highest price increase with +10.1% (€12.87 per m²), followed by Zeeland with +8.8% (€12.30 per m²). The province with the highest prices per square metre is Noord Holland with an average of €19.20.
Stabilisation of average size of houses and flats
In recent years, the average size of rental properties and flats has been steadily decreasing. Now, we are seeing signs of stabilisation. In the first quarter of 2023, the average living space of rental properties and flats stood at an average of 80m2. New-build flats are smaller at 76m2 than existing properties, which have an average area of 81m2. However, new-build houses are larger on average at 115m2 than existing houses, which have an average area of 113m2.
Source: Marc van der Lee. (11-05-2023). Fewer rental transactions with slightly falling rents. Never mind.