Amsterdam’s Canal Ring District Has Historic Charm and Water Views

Encircling the city’s historic center, the Canal Ring district, or Grachtengordel, features arc-shaped, criss-crossing waterways and picturesque bridges that date back to the Dutch Golden Age of the 17th century. Much of its appeal, though, lies in its historic, gabled canal houses and mansions, which are increasingly being bought by wealthy expats and second homeowners.

The boundaries

The area’s eastern border goes slightly beyond the Singel canal, the western border is roughly Prinsengracht (prince’s canal), the northern border is around Brouwergracht (brewers’ canal) and the Amstel River is its southern edge. The Keizersgracht (emperor’s’ canal) and Herengracht (lords’ or patricians’ canal) lie between Singel and Prinsengracht. The entire area is a Unesco world heritage-designated site.

Price range

Prices start from €5,000 (US$5,460) to €6,000 ($6,552) per square meter and go up to €18,000 to €20,000 (around US$20,000-US$22,000) per square meter, according to Jim Reerink, CEO of Netherlands Sotheby’s International Realty. "A nice apartment or house beside one of three main canals [Prinsengracht, Keizersgracht and Herengracht] costs between €7,000 and €12,000 (around US$7,800-US$13,000) per square meter," he said.

The range across the board, said Oscar Meeuwsen, of Broersma, a broker in Amsterdam and an affiliate of the Knight Frank estate agency, is €6,000 to €17,000 per square meter (around US$6,600-US$19,000).

"If you want to buy a home beside a canal, expect to pay more than €6,000  (or US$6,700) per square meter," said Barbara van der Grijp, of Engel & Völkers in Amsterdam. "A small house overlooking the water costs about €2 million (US$2.2 million)."

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Housing stock

The Canal Ring district has some of the city’s grandest and most richly decorated houses. Built tightly packed together and featuring slim facades with striking gables, pitched roofs and long windows, they are a central part of the city’s charm. Each house was individually designed and has its own distinctive character.

Constructed as homes and workspaces for rich merchants, they have basements and attics where goods were once stored, and their gables are fitted with hooks, so that a pulley system could be installed to hoist large items through the windows.

Ranging from four to six stories, some are deceptively large, as the rear of the property can be much larger than the front. Houses with gardens can be as large as 1,000 square meters (around 11,000 square feet). Apartments, meanwhile, can occupy one, two or three full floors of a house and range in size from 25 to 1,000 square meters (269 to 11,000 square feet).  

About 80% of the houses have been divided into lateral apartments, according to Mr. Reerink. The best floor is known as the bel etage, a French phrase meaning beautiful floor, which refers to the floor that is the nearest to the ground floor and features the principle rooms. This floor usually contains high ceilings, decorative plaster work and huge windows.

Houses on side streets tend to be 20% smaller than those on the water, according to Mr. Reerink.

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An area called De Negen Straatjes ("Nine Streets"), off the Herengracht, Keizersgracht and Prinsengracht canals, has become popular in recent years. "It’s a trendy place that buzzes with cutting-edge shops and cool places to eat and drink," Ms. van der Grijp said.

An interior view of the 4,068 square feet townhouse CHRISTIE’S INTERNATIONAL REAL ESTATE

What makes it unique?

The Canal Ring area is romantic, old and has a bohemian, artistic character, Mr. Reerink said. "It attracts people who are liberal and open, and it has a friendly, neighborly feel. It is a buzzing place that is popular with holidaymakers and daytrippers, but it is away from the bustle of the main squares," he said.

The area is well preserved, has good shops and restaurants, beautiful historic homes and a laidback and low-key vibe, Mr. Meeuwsen said. "If you’re famous and live here, you can stay under the radar."

He added: "It’s really idyllic, you can get everywhere by bike and it is only 10 to 15 minutes from the city’s financial district. People are drawn to the area’s artistic heritage and culture. There is also a good mix of homes and offices, making it a happening spot during the day and evening."

It’s a unique place to live, said Ms. van der Grijp. "Behind every door, there is a different atmosphere. People are always so surprised at how beautiful the canal houses are inside. There are shops and cafes on every corner, which makes it a great place to live."

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Luxury amenities

The Nine Streets area has many trendy cafés, boutiques and bars. There’s L’Etolie De Saint Honore, a vintage shop selling second-hand designer clothing; Denham, a denim brand; Vyne, a delicatessen wine bar; and a Libertine Café, an all-day café with an industrial-style decor.

Located in a 17th-century warehouse, John Dory is a restaurant with elegant seafood sourced from Dutch waters.

New boutique hotel houses are some of the city’s hippest bars and restaurants. Vinkeles is a modern French restaurant with a Michelin star in The Dylan Hotel, a small 40-room hotel housed in a canal mansion with an interior courtyard.

The Hoxton Hotel has 111 rooms spread across five houses on Herengracht. It has Lotti’s, a café, bar and grill; a coffee and cocktail den; and a bar in the lobby.

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Considered one of Amsterdam’s best luxury shopping streets, PC HooftStraat has Prada, Valentino and Gucci stores, and some quintessentially British brands, including Burberry and Paul Smith.

The Anne Frank House, where Jewish diarist Anne Frank hid with her family from the Nazis, and The Museum of Canals, which tells the story of how the Canal Ring was created, are among the area’s cluster of museums.

Who lives there

Residents of the district are mostly Dutch people but foreign investment is growing, according to agents. Mr. Reerink said that international buyers own or rent about 30% of homes in the district.

You need to be fairly wealthy to be able to own a home on the Canal Ring but rental properties can be more affordable. "The area has apartments that are rent-controlled, which can be as cheap as €900 (US$1000) per month," Mr. Reerink said.

Tommy Hilfiger, Booking.com and Netflix have recently relocated their headquarters to the city to benefit from the country’s lower corporate tax rates, according to Ms van der Grijp. "These firms are drawing more overseas people to the city," she said.

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Notable residents

Film director Steven McQueen, his Dutch wife, Bianca Stigter, and their two children have a home in the Canal District.

Justin Bieber recently bought a €25.9 million penthouse apartment overlooking Dam Square, which is close to the Canal Ring district. The three-story flat has a lift, four bedrooms, comes with its own butler and valet parking, according to the Daily Mail.

Outlook

The main drawback of living in the Canal Ring district is that there is a lack of off-street parking, Mr. Reerink said.

But the construction of a new line on the city’s Metro system should mean that residents won’t need to rely on their cars so much to get in and out of the city.  

The Noord/Zuidlijn (North/South metro line) will connect the old town with the northern and southern parts of the city. Expected to be completed in July 2018, the journey is estimated to take 16 minutes.  

When it comes to property, developers are buying canal houses and turning them into high-end apartments and homes with the latest fixtures and fittings, according to agents, often with foreign buyers in mind.

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"We recently had a family from Paris looking in the area who had a budget of €15 million (US$16.7 million)," Mr. Reerink said.

"The top end of the market is gaining more attention from overseas buyers," Mr. Meeuwsen said. "They are looking for upscale homes with canal views and they don’t want the hassle of renovating."  

"This area is seen as a good place to invest because the market has held up and rental yields are decent, ranging from 4% to 6%" said Alexander Koch de Gooreynd, a partner in Knight Frank’s international team.

"New five-star hotels are drawing high-end tourists that previously weren’t there before. They come here on holiday, fall in love with the place and decide they want to invest in a second home," Ms. van der Grijp said. Prices are climbing, but it is still relatively cheap compared with London, Paris and New York."