Many buyers in the Netherlands look at a Funda listing, glance at the asking price, and think: “This feels expensive.” But feeling is a weak basis for decisions involving hundreds of thousands of euros.

A better approach is to break the question into a few concrete steps: first estimate a neutral baseline, then adjust systematically for the things that make this apartment better or worse than the typical one. That is essentially what professional valuation does.

This article gives you a practical framework you can reuse for any Dutch apartment. It is not a formal appraisal, but it helps you reason clearly instead of guessing.

1. Start with a Neutral Baseline Using Size-Adjusted €/m²

The first step is to calculate a neutral baseline value for the apartment. Crucially, this is not done by simply multiplying the size by the city’s average price per square meter. If you did that, you would systematically overvalue large apartments and undervalue small ones.

In reality, smaller apartments usually have a higher €/m², and larger ones a lower €/m². To reflect that, the baseline works in two steps:

  1. Start from the average €/m² for all apartments in the chosen city or region. This is an unfiltered market level.
  2. Adjust this €/m² for the apartment’s size:
    • If the apartment is small (for example 35–50 m²), the model applies a size premium and raises the €/m².
    • If the apartment is large (for example 90–120 m² or more), the model applies a size discount and lowers the €/m².
  3. Multiply the size-adjusted €/m² by the living area to get the neutral baseline value.

Example (simplified):

  • Average for all apartments in the area: €7,000/m²
  • Size of the apartment: 65 m²
  • The model determines that 65 m² is slightly above the small-apartment premium band, so it applies a modest size discount and brings the adjusted €/m² to, say, €6,700/m².

The neutral baseline value then becomes:

€6,700 × 65 m² = €435,500

In short: the starting value is based on the average €/m² for all apartments, corrected for the apartment’s size. This avoids treating all m² as equally expensive, when the market clearly does not.

2. Compare Layout and Space Efficiency

Two apartments with the same size can feel completely different. Layout and space efficiency determine how much of the m² are actually usable.

2.1 Questions to ask

  • Is there a long corridor that consumes many square meters?
  • Are there awkward corners or irregular walls that are hard to furnish?
  • Is the living room proportionate to the total size?
  • How many usable bedrooms do you actually get?
  • Is the kitchen functional or squeezed into a corner?

A 65 m² apartment with two good bedrooms and a balanced living area is not the same as a 65 m² apartment where 15 m² is essentially hallway.

2.2 How to translate this into value

In practical terms, a clearly poor layout often justifies a discount of several percent compared with a typical layout in the same size range. A very well-optimised layout can justify a small premium.

As a rough rule of thumb (not a guarantee):

  • Very inefficient layout: think in terms of −3% to −8%
  • Average layout: no real adjustment
  • Exceptionally efficient layout: +2% to +5%

3. Adjust for Condition, Renovation and Energy Performance

Next, compare the apartment’s condition with what people in this segment expect.

3.1 Key aspects

  • Kitchen and bathroom — are they recent, neutral and functional, or dated and in need of replacement?
  • General maintenance — do floors, walls and windows look solid and well kept?
  • Energy label — is it aligned with typical expectations in the building age and area, or clearly better/worse?

A full renovation (especially kitchen + bathroom + floors) is easily in the tens of thousands of euros. Buyers will price that in, even when the seller does not want to.

3.2 Translating to adjustments

  • If you estimate that you must invest €25,000 soon after purchase to bring the apartment to a typical level, the realistic value should be roughly that amount lower, sometimes even more because of hassle/risk.
  • A very high-quality renovation with a strong energy label may justify a premium, but only up to what buyers are willing to pay in that neighbourhood and price segment.

4. Location, Mobility and Neighbourhood Quality

Location is more than distance to the city centre. Dutch buyers care about:

  • Access to public transport (tram, metro, train, bus)
  • Travel times to common destinations (work, city centre, ring roads)
  • Presence of cafés, supermarkets, parks and basic amenities
  • Neighbourhood safety, nuisance and cleanliness

4.1 When the location justifies a premium

Premium locations usually combine:

  • Short walking distance to public transport
  • Easy access to the city centre
  • Pleasant streets, low crime and good liveability
  • Strong amenity mix (shops, cafés, green space)

In such cases, a higher price per m² than the city average is normal.

4.2 When the location calls for a discount

Think about a busy road, perceived safety issues, lack of amenities or long travel times to common destinations. Even if the apartment itself is nice, buyers will discount for these factors, often more than sellers like to admit.

5. Building, VvE and Structural Risks

Many buyers forget that they are not only buying their apartment, but also a share of the building and the owners’ association (VvE).

5.1 Things to review

  • VvE reserve fund and recent service charge history
  • Multi-year maintenance plan (MJOP), if available
  • Recent or upcoming large projects (roof, façade, balconies, elevators)
  • Any legal disputes or special assessments

A weak VvE or large upcoming maintenance costs can justify a substantial discount compared with a similar apartment in a solid, well-managed building.

6. Ground Lease (Erfpacht) and Recurring Costs

In cities like Amsterdam, erfpacht (ground lease) is a major factor. You must look at:

  • Is the land lease perpetual, temporary or bought off?
  • What are the current yearly payments?
  • How and when can these payments be indexed or reset?

Recurring costs reduce what buyers can afford in mortgage payments and therefore affect what they can reasonably pay for the apartment itself.

A fair comparison between a freehold apartment and one with significant lease payments requires adjusting the value of the lease separately, not just looking at the headline asking price.

7. Putting It All Together: A Simple Checklist

To decide if an apartment is overpriced, you can walk through the following checklist:

  1. Baseline: Start from the average €/m² for all apartments in the area, apply the size premium/penalty to get a size-adjusted €/m², then multiply by the living area.
  2. Layout: Adjust up or down for space efficiency and usable rooms.
  3. Condition & energy: Subtract realistic renovation costs, or add a modest premium for clearly above-average quality.
  4. Location & liveability: Adjust for transport access, amenities, safety, nuisance and overall neighbourhood quality.
  5. Building & VvE: Adjust for structural risks, reserves and upcoming maintenance.
  6. Ground lease & recurring costs: Adjust for erfpacht and other long-term financial obligations.

After these steps, compare your adjusted value range with the asking price:

  • If the asking price is clearly above your adjusted range, the apartment is likely overpriced for today’s market.
  • If it sits comfortably inside the range, it is probably reasonably priced.
  • If it is below the range, there might be an opportunity — or something important you have not yet discovered.

8. How PriceDecoder Helps Apply This Framework

Doing all of this manually for every apartment is time-consuming. PriceDecoder automates the logic by:

  • Starting from an average, size-adjusted €/m² baseline for all apartments in the area
  • Applying structured adjustments for more than 25 parameters
  • Separating the impact of layout, neighbourhood, mobility, liveability and building factors
  • Presenting the result as a transparent breakdown rather than one opaque number

You still remain in control of the final judgment, but you see clearly where the value comes from and which factors push the price up or down.

Conclusion

Asking whether an apartment is “overpriced” only makes sense when you compare it with a structured notion of realistic value. By starting from a size-adjusted baseline based on the average €/m² for all apartments, and then adjusting for layout, condition, location, liveability, building quality and recurring costs, you can form a much clearer view.

This framework will not replace a formal appraisal, but it will make you a more informed buyer in Dutch cities, where competition and emotion are often high.

If you want to see this logic applied automatically to a specific listing, you can run it through PriceDecoder and inspect the factor-by-factor adjustments.