New buildings in the Netherlands
Location and climate
The Netherlands is a country whose main territory is located in Western Europe, bordered by the waters of the North Sea, and on the islands in the Caribbean Sea (Bonaire, Sint Eustatius and Saba). The Netherlands is a member of the UN, NATO, the European Union. The capital is Amsterdam.
The climate is temperate maritime (comfortable summer, and not cold winter). The average temperature in July is +17°C, in January - about +2°C on the coast, somewhat colder in the interior of the continent.
For the information of the investors: economics, culture, and education
The Netherlands is in an economically advantageous position in the center of Western Europe, attracting with well-thought-out transport logistics, favorable conditions for doing business, and highly qualified personnel. Unemployment in the country is one of the lowest in the European Union (according to various estimates, from 2 to 3%). The economy is based on the leading industries: petrochemistry, mechanical engineering, aircraft building, shipbuilding, ferrous and non-ferrous metallurgy, pulp and paper industry, the country produces beer, clothes, chocolate, cigars, gin, diamonds are processed in Amsterdam. Agriculture is a highly intensive and highly productive sector, agricultural land dominates here (65%) and is carefully maintained. The country leads the world in terms of area dedicated to greenhouses for floriculture, heated by natural gas.
Many famous artists lived and worked here: Hieronymus Bosch, Rembrandt van Rijn, Jan Vermeer, Jan Stein, Vincent Van Gogh, philosophers - Spinoza, Descartes. The scientist Christian Huygens discovered Saturn's moon Titan and invented the pendulum clock. Pieter van Muschenbroek invented the first electrical capacitor. In the field of literature, the work of Anne Frank (The Diary of Anne Frank) should be noted. All major cities have wonderful symphony orchestras, the most famous of which are the Royal Orchestras of Amsterdam and The Hague. The Dutch ballet is one of the best in Europe.
The Netherlands has 14 government funded research universities with over 200,000 students. There are more than 40 universities of applied sciences in the country, where the program is based on obtaining practical knowledge; in total, more than 350,000 students study at those universities.
Why is it profitable to buy an apartment in the Netherlands in a new building?
The prices for new buildings in the Netherlands from the developer: are increasing at a record pace, which is beneficial for investors, but creates certain social problems on the verge of a housing crisis and public protests. Politicians are forced to react - the budget provides for additional funds for the construction of affordable housing. A number of cities are planning to pass a law prohibiting investors from buying housing for rent, including real estate in the Netherlands in the new buildings, since it is investors, according to the authorities, who contribute to unreasonable speculative price increases, which is why primary housing for life every year becomes less accessible to the public.
At the end of 2020, 40% of the sale of apartments from developers was carried out in large cities, according to the land registry of the Netherlands. This exacerbated the housing shortage that already existed. Currently, prices will continue to rise, as experts predict, by at least 30%. The Central Bank predicts a more modest, but still significant growth. The fundamental reasons for the increase in prices for residential complexes in the Netherlands are obvious: the lack of housing construction, a strong economy, population growth, low unemployment, and affordable loans.
The process stimulates a global jump in the cost of building materials. Rental yields are being constrained by government action to curb rate hikes (e.g. in the private sector). Finding interesting options for investors is becoming increasingly difficult. They usually focus on the most promoted locations, which are not always, in fact, attractive in terms of investment. Thus, they will have to search longer and make a decision faster. Fortunately, the prospect of receiving high incomes creates the appropriate motivation and willingness to act here and now.
The minimum price per square meter of space in an apartment in a new building of Amsterdam, transferred to the buyer in a turnkey condition (according to the information of the GEOLN.COM search engine) is 5,400 USD.
Acquisition of apartments in the Netherlands from the developers by foreign citizens
The country has not established any restrictions on the purchase of real estate in the new buildings by foreigners. Foreign investors are free to buy apartments from the developers in the Netherlands.
Purchasing an apartment in a new building in the Netherlands is an extremely profitable investment that will provide a very high rental income and the opportunity to live in a country with a strong economy. True, too rapid price growth creates problems for buyers from middle-income countries, which can force the government to take comprehensive measures to cool the market.