Netherlands - a new financial harbor for EU
The Netherlands successfully lures
international companies from Britain, reports Euronews. At the same time, the
real estate market of Amsterdam was under pressure, housing prices rose on
average to almost 500 000 euros.
140 companies from the UK have moved to the
Netherlands since the 2016 British referendum, making preemptive step in the
light of inevitable Brixit agreement with EU. According to the Netherlands
Foreign Investment Agency NFIA, more than half of the firms - 78 - relocated
last year. It is expected that companies will create more than 4,200 jobs and
invest 375 million euros in the country's economy.
Negotiations are underway with 425 companies
from the UK about their possible relocation. Companies that move to the
Netherlands or intend to do so are not only British, but also American and
Asian firms. Most of them offer services in related to Fintech, IT, media and
advertising.
At the same time, the real estate market of
Amsterdam is already under pressure, due to the fact that many foreign
companies have moved their headquarters here. The average cost of housing in
Amsterdam has risen in price to almost 500 000 euros. Experts saying that, most
likely real estate prices will continue to go up in the coming years, mainly,
because the constructions volume is not sufficient enough for constantly
growing demand. Building is a long-term process, which involves significant
paperwork, getting permits, etc., so this problem cannot be overcome at once. Reportedly,
the housing shortage last year have risen to 260 000 units, which is more
than all previous years and the gap continues to grow bigger.
The relocation of many companies will depend on
the specifics of future agreements between the UK and the EU, the NFIA said.
Great Britain officially left the European
Union on January 31, 2020. However, the transition period will last until the
end of the year. Prime Minister Boris Johnson said he would not seek an
extension of the transition period and that a free trade agreement should be
concluded before the end of 2020.