Understanding how size influences the price per square meter (€/m²) is essential when evaluating apartments in the Netherlands. Many buyers assume that larger apartments automatically command higher value per m², but the opposite is often true — especially in cities like Amsterdam, Utrecht, Rotterdam, and The Hague.

This article explains why €/m² decreases as living area increases, how layout quality matters just as much as raw size, and how PriceDecoder models these effects to provide a realistic valuation.

1. Why Price per Square Meter Declines as Size Increases

1.1 Fixed Costs Do Not Scale with Size

Every apartment has certain features that cost the same regardless of the total living area:

  • Kitchen
  • Bathroom
  • Entrance
  • Hallways
  • Utility areas

In a 45 m² apartment, the kitchen and bathroom might consume 20–25% of the entire space. In a 120 m² apartment, they might represent only 10%.

This means smaller apartments have a higher share of expensive space, pushing €/m² up.

1.2 Buyer Demand Is Strongest for Smaller Units

In major Dutch cities:

  • Starters look for homes between 35–70 m²
  • Investors target compact studios and 1-bedroom flats
  • Young professionals often prefer 45–65 m²

This creates intense competition for small and medium apartments, driving prices per m² higher.

Large units (100–150 m²), especially in cities with tight budgets and small households, face weaker demand, resulting in lower €/m².

1.3 Scarcity Premium on Small Apartments

Compact apartments in high-demand areas are limited in supply. A newly listed 40 m² flat in Amsterdam Oud-West might receive dozens of viewings on day one.

When supply is scarce and demand is high, €/m² rises above the city average — sometimes significantly.

Illustrative Example

  • 45 m² apartment priced at €8,000/m² → €360,000
  • 120 m² apartment priced at €6,000/m² → €720,000

The larger apartment is cheaper per m², even though it is nearly twice the price overall.

2. Not All Square Meters Are Equal: The Impact of Layout

Raw size is only part of the story. Two apartments may both be 70 m², but their usable living space can differ dramatically.

2.1 Space Efficiency

A well-designed layout provides:

  • Minimal hallway space
  • Logical room distribution
  • Straight walls
  • Good natural light spread

A poorly arranged apartment may have:

  • Long corridors
  • Awkward corners
  • Irregular walls
  • Unusable “dead zones”

A highly efficient 60 m² apartment can feel — and function — like a 70 m² one.

2.2 Room Count Matters in the Netherlands

Dutch listings describe homes in “kamers”:

  • 2-room (1 bedroom)
  • 3-room (2 bedrooms)
  • 4-room (3 bedrooms)

Even if two apartments have the same size, the number of usable rooms heavily influences value. A 65 m² apartment with two bedrooms is often more attractive than a poorly divided 75 m² one with only one.

2.3 Storage, Ceilings, and Usability

Other layout-related factors include:

  • Storage rooms that add value when functional
  • Higher ceilings that make spaces feel larger
  • Open-plan vs segmented layouts that influence perceived spaciousness

This is why simple “size alone” is an incomplete indicator of true value.

3. The Size Premium and Size Discount Curve

PriceDecoder uses a Size Efficiency Adjustment to account for the real-world €/m² curve.

3.1 Size Premium (Small Apartments)

Small apartments often command:

  • +5% to +25% above the city’s average €/m²
  • Especially strong in central districts
  • Driven by demand from starters and investors

3.2 Neutral Zone (Medium Apartments)

Properties between 60–80 m² frequently align closest to the average €/m² for the city.

3.3 Size Discount (Large Apartments)

Larger units often trade:

  • −5% to −20% below average €/m²
  • With a narrower buyer pool
  • Where families may prefer houses rather than large city apartments

This pattern is consistent across most Dutch cities.

4. How Size Interacts with Other Value Drivers

Size doesn’t operate in isolation. Here are some interactions the model captures:

4.1 Energy Label & Layout

A small apartment with great layout and a high energy label can outperform much larger units.

4.2 Noise Level

For large apartments near busy roads:

  • The absolute noise penalty grows
  • Buyers expect a quieter experience in premium-sized units

4.3 Distance to the City Centre

Small central studios can reach extremely high €/m² due to lifestyle demand.

4.4 Floor Level

Large penthouses may reverse the size discount entirely because the view dominates the valuation. This multifactor approach is essential for realistic pricing.

5. Example Comparison (Hypothetical)

Apartment A — Amsterdam Oud-West

45 m²

  • Base: €6,500/m²
  • +€1,000/m² size premium
  • Final: €7,500/m² → €337,500

Apartment B — Utrecht Lombok

110 m²

  • Base: €5,500/m²
  • −€700/m² size discount
  • Final: €4,800/m² → €528,000

These examples highlight how size influences €/m² far more than many buyers realise.

6. How PriceDecoder Models Size Fairly

PriceDecoder incorporates the size effect using:

  • A downward-sloping €/m² curve based on real urban market behaviour
  • Adjustments for layout quality (“Space Usage”)
  • Interactions with more than 25 other parameters
  • Weighted feature contributions using explainable modelling rather than a pure black box

This approach avoids over-simplified valuation methods and provides a more transparent and realistic estimate.

Conclusion

In the Dutch housing market, size and layout strongly influence the price per square meter:

  • Smaller apartments typically have higher €/m²
  • Larger units often receive discounts
  • Layout and usability can outweigh raw size
  • Location and external factors amplify or soften these effects

Understanding this helps buyers avoid overpaying — and sellers set realistic expectations.

To see the exact impact of size and layout on a specific apartment, you can use PriceDecoder to run a detailed valuation.