ROTTERDAM, 30 October 2025 – Buying leasehold land (erfpachtgrond) in Rotterdam is set to become significantly cheaper. The municipality has announced a modernised calculation system that limits the purchase price of land to 60% of its appraised market value, providing relief for homeowners facing rising ground prices.
The decision follows growing concern among leaseholders whose contracts were nearing expiry and who faced sharp cost increases. The adjustment ensures greater financial certainty and brings the city’s rates in line with other major Dutch municipalities. The municipal council was informed of the new measures earlier this week.
Modernising the leasehold system
The municipality of Rotterdam is updating its leasehold (erfpacht) policy to make it more transparent and fair. Deputy Mayor for Climate, Housing and Construction, Chantal Zeegers, explained: “The municipality has listened carefully to the concerns of homeowners. We wanted a solution that feels fair and balanced, so we commissioned additional research and gathered input from interest groups. The result is a system that better fits today’s housing market.”
Leaseholders can now choose the option that suits their personal circumstances when their temporary contract expires: either continue paying an annual or monthly leasehold fee (canon), or purchase the land outright.
Paying a monthly canon
Last year, the city reduced the canon rate from 5.11% to 3.06% of the current land value. This move lowered average monthly payments to around €164 in 2025. Those unable to pay immediately may defer payment until they sell their property, at which point the outstanding amount will be settled from the home’s equity.
The municipality is also exploring a 25% reduction in the calculation method for those renewing their leasehold period. Legal research is currently under way to confirm this option.
Buying the land under the home
Homeowners choosing to buy the land will now pay no more than 60% of its appraised value, calculated as of 1 January 2024. This adjustment makes purchasing far more affordable for many residents. The offer will be available once to each leaseholder within the next five years. After that, the purchase price will be capped at 75% of the land value.
If a leaseholder disagrees with the municipal appraisal, a new procedure allows three independent experts to issue a binding valuation, ensuring fair and transparent treatment.
Buyers of homes built on leasehold land may also acquire the land at its historical value, provided their leasehold contract is still within a 50-year prepayment period and they apply within one month of purchase. This reinstates a rule from 1988 that had not been consistently applied in recent years.
What the new system means for homeowners
A typical leaseholder with a 99-year contract — and the first 50 years already prepaid — currently pays only a mortgage. Once that initial period ends, they may choose to start paying a monthly canon or purchase the land. Under the new policy, the purchase price will be capped at 60% of the land’s value.
With the average land value in Rotterdam estimated at €100,000, most homeowners will pay no more than €60,000 to buy the land beneath their home. For those nearing the end of their contract, the savings could amount to tens of thousands of euros.
Zeegers concluded: “These adjustments give every leaseholder the flexibility to choose what suits them best. It is a fair gesture that also makes financial sense for the city. We will continue to engage with leaseholders and advocacy groups to ensure a smooth implementation of the new rules.”
.png "Unbox surprises at King Colis lost-parcel pop-up Rotterdam")
