Property Amsterdam, no district in Amsterdam is changing as fast as Amsterdam-North. There are many new buildings, renovations and new initiatives, but the metamorphosis is also met with resistance; the character of the district is changing rapidly. An AT5 panel survey of 1,800 North residents found that most of them are still proud of their district, but there are also concerns about affordability. How quickly have things changed in recent years?
The AT5 panel asked the residents in Amsterdam North questions about housing, amenities, restaurants, public transportation and the rapid changes in population composition in recent years. Main conclusions: Amsterdam-North residents love their district, where there is still a relatively large amount of space and greenery. The Noord/Zuidlijn is a boon to many people. But there are serious concerns about rising housing prices and whether the district will remain affordable.
Also, the old North residents and the new residents of the district have little contact, which is a darker side of the gentrification of the district. Many residents are critical of this process in which working-class neighbourhoods, often after years of neglect, are refurbished and become popular with highly educated and high-earning new residents. This causes a change in people living in the district but also a change in, for example, the catering offer or schools
Property Amsterdam: 400K for a worker’s house
For many years, the Tuindorpen had a rural and close-knit atmosphere. Children and grandchildren often continued to live in the ‘village’. But as a neighbourhood becomes more popular, housing prices rise. And the North residents suffer the consequences.
For example, many survey participants said that the district has become unaffordable if you do not have dual income. “A worker’s house changes hands for more than 400K. That’s just crazy!” And the Tuindorpen are also becoming increasingly popular: “Everything that becomes available in the Tuindorpen is sold right away at ridiculous prices. My son is 32 and still lives at my house. That says it all”.
So North is a district of contrasts. It has seen tremendous development in recent years, but many of its residents still live in poverty. That’s why AT5 dove into the figures on the district.
Lowest income? 11,600 per year
The average annual income of an Amsterdam resident is about 31,000 euros. But in North, the differences by district are quite different. The district in North with the lowest average income is the NDSM yard with 11,600 euros per year. But that’s probably because of the large number of students who live there.
Van der Pekbuurt, the Bloemenbuurt, Vogelbuurt and the Tuindorpen are also below the city average with around 22,000 euros. The neighbourhood with the second lowest income is De Kleine Wereld at about 15,000 euros. De Banne Zuidwest, Markengouw and De Molenwijk are also at the bottom with about 17,000 euros per inhabitant per year.
Earning three times as much as the neighbours
The outliers at the top are found in rural Amsterdam North, where places like Schellingwoude earn more than double, about 46,000 on an annual basis. In the new residential district Overhoeks, situated on the IJ where mainly new Amsterdam North residents are moving to, good money is also being earned. This is where the highest average annual income can be found at about 49,000 euros per inhabitant per year.
“There is a lot of construction going on in Amsterdam North, which is changing the district and its residents. That puts pressure on social cohesion”, acknowledges spokesperson for the Noord district Roos Groen.
But the municipality is trying to find solutions to that. For example, according to the district, playgrounds, a care centre, parks or a shopping centre are deliberately placed between an existing and a new neighbourhood. This way, the municipality hopes that different types of residents will meet.
Price of property in Amsterdam North more than doubled
In the AT5 panel survey, 70% of participants indicated that there are not enough affordable homes in Noord. If you look at property prices in recent years, the selling price of a property has more than doubled in 6 years. In 2015, you could still buy property in Amsterdam North for 192,000 euros, according to the Amsterdam Real Estate Brokers Association (MVA). In recent years, that price has increased by tens of thousands of euros per year.
Over the past three months, the district saw its fastest increase in the entire city. A property in Amsterdam North now sells for an average of 462,000 euros. That is already 70,000 euros more than three months ago.
According to Jerry Wijnen of the MVA, the main reason is that interest rates are low, demand is high and supply is low. “But specifically in Amsterdam North, it seems that Amsterdam residents have discovered the district. They used to say “behind Central Station is where the world ends, that’s where the farmers live. That’s no longer Amsterdam”.
But these days, Amsterdam North is appreciated more and more, says Wijnen. “They realise it’s at a short distance from everything they need. Within fifteen minutes you’re on Dam Square, and those ferries also have something hip and trending about them.”
But that popularity does sometimes lead to odd situations. Wijnen: “A realtor I know in Amsterdam North offered a property in Amsterdam Tuindorp Oostzaan on Friday, and by Monday he had 102 responses. That results in prices where I think: that property just isn’t worth that much. And I studied for it”.
You see those property price increases specifically in districts that have always lagged behind a bit, Wijnen says. “You see the same thing in the Bijlmer. That’s where I would point people if they were looking for property under 200K. That’s not possible anymore either.” But in Amsterdam North, there is also a relatively large amount of additional construction in a higher price range. “A lot of expensive property have been put up. As a result, the average price for a home is also rising.”
The fact that Amsterdam North is no longer affordable for everyone is a worrying development, he says. “Older residents also just want to have the kids live nearby, and that’s not always possible now. If people in a more expensive part of the city sell their homes and use that excess value for a home and property in Amsterdam North, they’re still cutting those people off in the process.”
But you have that in Amersfoort too, says Wijnen. “There, they also feel that the homes are being taken by Amsterdam residents. I get that it’s undesirable, but it’s how the market works. The only solution is to just build more homes.”
House with a garden
Corona also made us appreciate a garden and extra bedrooms more. People were quite willing to live in a smaller house at first. But working from home and teaching your kids at the same kitchen table definitely changed that view, says Wijnen. “And don’t forget that prices within the ring are at such a level that Amsterdam North is still somewhat affordable. You get relatively more for your money, more square footage and often a little garden.”
Four times as many hospitality permits
In the AT5 panel survey, 80% of Amsterdam North residents said they have seen the hospitality industry in their district change significantly. They do experience that as positive. They like the fact that the offer has become more diverse, although
residents also indicate that they do not want “trendy cafes and expensive restaurants” to drive out the existing hospitality industry in Amsterdam North.
Koninklijke Horeca Nederland, the trade association for hospitality entrepreneurs, is also seeing a lot more members in the district. This is also evident from figures from the municipality of Amsterdam. In 2011, for example, only 22 hospitality permits per year were issued for opening a pub or terrace. By 2019, this had nearly quadrupled to 92 permits.
If you look at the total of hospitality establishments you see more than double. In 2011, there were a total of 190 catering establishments in Amsterdam North. Now there are more than 430.
Many Amsterdam North residents indicated that, as far as they were concerned, more hospitality establishments could be added. If you look at the number of cafes, restaurants or hotels per 1000 inhabitants, it is understandable. This is because the average for the whole city is 8, and in Amsterdam North there are only 4.
New residents who participated in our Amsterdam North survey indicated that they were drawn to the new construction projects and that it was easier to buy or rent a home there than elsewhere in the city. Figures from the municipality of Amsterdam show that there will also be a lot of new construction in the coming years.
Some 23,500 homes will be added in Amsterdam North over the next 10 years. Of these, about one third will be social rental and one third expensive rental or owner-occupied homes. The last part will be mid-priced rental, i.e. homes that cost a maximum of 1,040 euros per month.
Wijnen of the real estate association understands why so much is being built in North and Nieuw-West. “That’s simply because there is still space there.” And adding 23,000 homes and property in Amsterdam-North may sound like a lot, but it’s actually far too little, says Wijnen. “That’s just not going to make the difference. We need to build much more than that. If there are more homes, the average price will also come down.”
Property Amsterdam needs to go verticalWijnen also sees a solution in high-rise buildings on the edges of the city. “It all really makes me think, why not go vertical in Amsterdam North as well? Build those flats on the sides of the city. I’m not allowed to say it as an Amsterdam resident, but when I see those high-rise buildings by the water in Rotterdam, I think: that does look quite beautiful.”
