If you are thinking about buying in Amsterdam, there are a few extra things to keep in mind: erfpacht (ground lease), VvE rules for apartments, and a market where overbidding still happens, though not as much as before.
This article is written by Luc, our mortgage advisor at OHAO, who helps expats to get mortgage approved and buy a home in the Amsterdam region. Below, we cover what is typically different about buying in Amsterdam compared to the rest of the Netherlands.
Ground lease (erfpacht): one of the common factors of Amsterdam
A significant share of homes in Amsterdam are built on land owned by the municipality. When you buy a property on erfpacht (ground lease), you own the building but lease the land beneath it and pay a ground rent, called the canon.
If you plan to buy a property in Amsterdam, one of the most important things is to check whether your apartment has erfpacht, as this can significantly impact your monthly costs, how much you can borrow, and your home’s long-term value.
Ground lease: continuous vs perpetual erfpacht
There are a few common ground ownership structures you can come across in listings on platforms like Funda, and understanding them is essential before making an offer.
1. Continuous ground lease (voortdurende erfpacht)
This is one of the most common systems in Amsterdam.
A continuous ground lease is set for a fixed period—often 50 or 75 years. During this time, you pay a fixed ground rent (canon).
However, at the end of the period, the lease conditions are reset. The ground rent is then recalculated based on the land value at that moment.
If property values have increased—which is often the case in Amsterdam—the new ground rent can rise significantly. This creates uncertainty for buyers, especially if the end of the lease period is approaching.
2. Perpetual ground lease ( eeuwigdurende erfpacht)
A perpetual ground lease works differently because the conditions are fixed for the long term. The ground rent is calculated once at the start and does not get recalculated based on future land values.
Instead of large increases over time, the rent is typically adjusted only for inflation each year. This means there are no sudden jumps in costs when a lease period ends.
For buyers, this makes it much more predictable and easier to plan for over the long term.
How erfpacht affects your mortgage
Mortgage lenders typically treat the erfpacht canon as a recurring cost, similar to how they treat existing debts. This can reduce your maximum borrowing capacity.
If the annual erfpacht cost is high, you might not be able to borrow as much as you thought, even if the asking price seems okay. How much you can borrow depends on your income and how Dutch banks calculate the loan-to-value ratio.
Before you make an offer in Amsterdam, check the erfpacht status, the amount of the canon, and the next revision due date. If you need help understanding how the ground lease can impact your mortgage, you can always schedule a free call with our mortgage advisors.
Erfpacht expample calculations
For example, let's say the asking price for a property in Amsterdam is €750,000. Let's say the annual erfpacht canon is €7,708, which means the monthly erfpacht payments will be: €7,708 / 12 = €642.33 per month.
Using the standard Dutch rule of thumb, banks reduce your borrowing capacity by approximately 20 times the annual canon. So €7,708 per year would reduce borrowing capacity by around €154,160.
Keep in mind this is an estimate — the actual reduction varies by lender and depends on the prevailing test interest rate (toetsrente).
It's good to know that prepaid erfpacht (afgekochte erfpacht) is treated differently. If the canon has been bought off upfront, there is no recurring monthly payment, so it does not reduce your borrowing capacity in the same way.
In short, erfpacht is significant in this case: it adds about €642 per month to your housing costs and can materially lower the maximum mortgage the bank will offer. If the canon is indexed, that €642 can also rise over time — which makes it especially important to check whether the canon is fixed, indexed, or subject to a future reset.
VvE: the homeowner association for apartment owners
Most homes for sale in Amsterdam are apartments, and if you buy one, you automatically become a member of the VvE (homeowner association). You stay a member for as long as you own the apartment.
What is a VvE for? The VvE is responsible for maintaining shared parts of the building, such as the roof, foundations, stairwell, elevator, building insurance, and exterior. You pay a monthly fee (servicekosten), which goes toward maintenance and a reserve fund for future repairs.
Why lenders care about your VvE?
One of the reasons why lenders look at the VvE is to assess the financial health of the building. If the VvE is poorly managed, has too little reserve money, or lacks a proper maintenance plan, lenders may see that as a risk and may be less willing to approve the mortgage or may apply stricter conditions.
A good VvE is registered with the Chamber of Commerce (KvK), has a multi-year maintenance plan (MJOP), saves enough money for repairs, and meets at least once a year with proper minutes. Dutch law sets minimum reserve rules, but the details depend on the building, so always check the VvE for the apartment you want.
A small VvE might be okay with modest savings, but for a big building, that same amount could be too low. If there isn't enough in the reserve when major repairs come up, owners can get a direct bill, sometimes for a lot of money.
Documents to request before you bid about your Vve
Ask your makelaar (buying agent) or the seller for these four documents before you make an offer.
Start with the splitsingsakte—the document that sets out ownership shares and voting rights.
Then look at the jaarcijfers, which show the latest financials of the VvE.
After that, read through the notulen (meeting minutes) to see if any major maintenance or issues are coming up.
Finally, ask for the MJOP, the long-term maintenance plan, if one is available.
VvE fees also count toward your monthly costs when banks decide how much you can borrow. Higher service costs can mean you qualify for a smaller mortgage.
The Amsterdam housing market in Q1 2026: A cooler picture
The market picture shifted in the first quarter of 2026. According to the NVM Q1 2026 housing market analysis, the average transaction price in Groot-Amsterdam was broadly flat year-on-year, while Rotterdam, Den Haag and Utrecht still showed positive annual growth.
NVM notes that Amsterdam has seen rising supply and declining average asking prices for some time, though buyers still tend to pay slightly above asking on average across the Groot-Amsterdam region.
Nationally, NVM reports that around two-thirds of homes sold in Q1 2026 went above asking price — the lowest share in two years — and the average overbid was about 3.7%, roughly €18,000.
This represents a meaningful cooling from the double-digit overbids common in 2021–2022. Selling times have lengthened slightly, and supply has grown, suggesting that buyers now have a bit more leverage than they did a year ago.
What does it mean for your offer strategy
Overbidding is still happening across the Netherlands, but it's not as intense as before. The Funda Index for Q1 2026 shows that about 35% of buyers expect to bid over asking, down from 41% last year. First-time buyers are still more likely to do so (around 54%), but overall, the mood has cooled a bit.
There is still competition for Amsterdam apartments, especially for starter and family homes. But now, a well-structured offer with fewer conditions can beat a higher bid that has more strings attached.
In general, overbidding is more common at lower price points, where competition is strongest. At the higher end, it tends to be less intense, and homes sometimes sell close to the asking price. That said, it really depends on the property, the area, and the timing—so take any percentages as rough guidance, not exact rules.
In today's market, your bidding strategy matters more than ever. A clean offer with fewer conditions often wins over a higher offer that is full of clauses.
What to expect in the future?
In its latest Woningmarktmonitor (April 2026), ABN AMRO expects Dutch house prices to keep rising in 2026, but at a more moderate pace. At the same time, the number of transactions is likely to stay somewhat limited.
According to the bank, rising incomes and the ongoing housing shortage will continue to push prices higher, but higher mortgage rates and general economic uncertainty are holding back growth.
For Amsterdam, price growth is expected to be more subdued than in smaller cities. Prices are already high, and there's been a bit more supply coming onto the market.
The main point: Prices are likely to move only a little, and there is less competition than before. Always check the latest forecasts before you decide.
Price differences between Amsterdam districts
Amsterdam is a small city, but prices vary a lot by district. Apartments in the cheapest areas cost about half as much as those in the most expensive ones. Centrum (including Jordaan) and the fancy parts of Zuid (like Oud-Zuid) are the priciest, followed by Oud-West, then Oost and De Pijp, then West and Noord. Nieuw-West and Zuidoost are usually the most affordable.
Best tip: always consult with your real estate agent and check up-to-date souces like Funda, NVM, and Kadaster for accurate price differences across Amsterdam neighbourhoods.
Top 8 practical steps to start buying a home in Amsterdam
Here is what the process actually looks like from start to finish.
First step is to check your finances and understand how much you can borrow. Our mortgage advisors at OHAO can provide a clear overview of your mortgage options in Amsterdam.
Start exploring which Amsterdam neighbourhoods you prefer to live in. Think about your must-haves and nice-to-haves. A buying agent (aankoopmakelaar) can also help find off-market listings.
View properties and assess key factors such as the erfpacht (ground lease), VvE documents, energy labels, neighbours, and location.
Decide whether to bid with or without a financial clause. Your mortgage advisor and real estate agent can help you decide and make your bid more competitive.
Submit your offer and wait for the deadline.
Sign the koopakte (preliminary agreement). Once your offer is accepted, you sign the purchase agreement. You have a 3-day cooling-off period to change your mind and typically 4–6 weeks to secure financing.
Start your mortgage application. Your mortgage advisor will begin the application while you collect the required documents for the lender.
Final step: transfer at the notary. Once your mortgage is approved, you schedule an appointment with the notary to sign the purchase deed and mortgage deed, and collect the keys to your new home.
If you want to know how much you can borrow, how erfpacht changes your budget, how to check a VvE, or how to make a strong offer, talking to a mortgage advisor can help you through the process. For more information, plan a free call with our mortgage advisors at OHAO.
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