Investment Property in Amsterdam

Investment Real Estate in Amsterdam

Amsterdam property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Amsterdam .

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Search Map of Amsterdam Investment Real Estate

Amsterdam (, UK also /ˌæmstərˈdæm/, Dutch: [ˌɑmstərˈdɑm] (listen)) is the capital and most populous city of the Netherlands with a population of 872,680 within the city proper, 1,558,755 in the urban area and 2,480,394 in the metropolitan area. Found within the province of North Holland, Amsterdam is colloquially referred to as the “Venice of the North”, attributed by the large number of canals which form a UNESCO World Heritage Site.

Amsterdam was founded at the Amstel, that was dammed to control flooding, and the city’s name derives from the Amstel dam. Originating as a small fishing village in the late 12th century, Amsterdam became one of the most important ports in the world during the Dutch Golden Age of the 17th century, and became the leading centre for finance and trade. In the 19th and 20th centuries, the city expanded and many new neighbourhoods and suburbs were planned and built. The 17th-century canals of Amsterdam and the 19–20th century Defence Line of Amsterdam are on the UNESCO World Heritage List. Sloten, annexed in 1921 by the municipality of Amsterdam, is the oldest part of the city, dating to the 9th century.

Amsterdam’s main attractions include its historic canals, the Rijksmuseum, the Van Gogh Museum, the Stedelijk Museum, Hermitage Amsterdam, the Concertgebouw, the Anne Frank House, the Scheepvaartmuseum, the Amsterdam Museum, the Heineken Experience, the Royal Palace of Amsterdam, Natura Artis Magistra, Hortus Botanicus Amsterdam, NEMO, the red-light district and many cannabis coffee shops. It drew more than 5 million international visitors in 2014. The city is also well known for its nightlife and festival activity; with several of its nightclubs (Melkweg, Paradiso) among the world’s most famous. Primarily known for its artistic heritage, elaborate canal system and narrow houses with gabled façades; well-preserved legacies of the city’s 17th-century Golden Age. These characteristics are arguably responsible for attracting millions of Amsterdam’s visitors annually. Cycling is key to the city’s character, and there are numerous bike paths.

The Amsterdam Stock Exchange is considered the oldest “modern” securities market stock exchange in the world. As the commercial capital of the Netherlands and one of the top financial centres in Europe, Amsterdam is considered an alpha world city by the Globalization and World Cities (GaWC) study group. The city is also the cultural capital of the Netherlands. Many large Dutch institutions have their headquarters in the city, including: the Philips conglomerate, AkzoNobel, Booking.com, TomTom, and ING. Moreover, many of the world’s largest companies are based in Amsterdam or have established their European headquarters in the city, such as leading technology companies Uber, Netflix and Tesla. In 2012, Amsterdam was ranked the second best city to live in by the Economist Intelligence Unit (EIU) and 12th globally on quality of living for environment and infrastructure by Mercer. The city was ranked 4th place globally as top tech hub in the Savills Tech Cities 2019 report (2nd in Europe), and 3rd in innovation by Australian innovation agency 2thinknow in their Innovation Cities Index 2009. The Port of Amsterdam is the fifth largest in Europe. The KLM hub and Amsterdam’s main airport, Schiphol, is the Netherlands’ busiest airport as well as the third busiest in Europe and 11th busiest airport in the world. The Dutch capital is considered one of the most multicultural cities in the world, with at least 177 nationalities represented.

A few of Amsterdam’s notable residents throughout history include: painters Rembrandt and Van Gogh, the diarist Anne Frank, and philosopher Baruch Spinoza.

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The financial stability of Amsterdam has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Amsterdam

Renting out your Amsterdam buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Amsterdam are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Amsterdam and be prepared to change your initial outlook.
Thoroughly research the Amsterdam location with a special emphasis on fringe areas outside the main Amsterdam metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Amsterdam.
Ensure that your target investment property in Amsterdam appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Amsterdam properties yourself is an easy option, but are these savings justifiable when you run into Amsterdam red tape? Physis Realty Amsterdam office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Amsterdam buy-to-rent sector.

With our expert guidance, investing in Amsterdam provides the secure knowledge that your money is working harder than it would in a local Amsterdam bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Amsterdam, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Amsterdam property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Amsterdam

Flipping property in Amsterdam

Flipping property is when we advise clients to buy a Amsterdam property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Amsterdam market has a time to react to the renovation.

The Flipping Strategy in Amsterdam

Investment property flipping in Amsterdam is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Amsterdam real estate investments are sometimes referred to by professionals as ‘distressed’ Amsterdam real estate.

What is distressed Amsterdam property:

Amsterdam property in need of renovation
Amsterdam real estate with a change of purpose and use
Oversold Amsterdam property
Bank repossessions in Amsterdam

Put simply, long term investors in Amsterdam purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Amsterdam investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Amsterdam property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Amsterdam use a minimum profit value of 22% when looking at potential Amsterdam projects. The reason for this is because there are lots that can go wrong in Amsterdam property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Amsterdam

For luxury property investors hoping to add a superb property in Amsterdam to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Amsterdam, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Amsterdam should be entrusted to only the highest-quality agency.

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