Determination of the local street rate

Municipality of Amsterdam

What is a neighbourhood street? The BSQ is determined for every neighbourhood street in Amsterdam. A neighbourhood street is that section of a street which falls within a single neighbourhood. The neighbourhood classification used for this is that of the Research, Information and Statistics department of the Municipality of Amsterdam. Long streets often stretch across several neighbourhoods. Amsterdam has around 5,000 neighbourhood streets.  

Last change on 2nd of July 2026, at 16:00 (CET) | Publication Standard 1.0

• Publication category: Other algorithms
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• Status: In use

General information

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Contact information

[e-mail]

Link to publication website

https://www.amsterdam.nl/wonen-bouwen-verbouwen/erfpacht/kosten-erfpacht/buurtstraatquote/

Responsible use

Goal and impact

We base ground rent costs on the land value of the property. We use the neighbourhood street quota (BSQ) to determine the land value for existing leasehold rights on land zoned for residential use. This is the percentage of a property’s WOZ value that consists of the value of the land. A BSQ takes account of the differences within a neighbourhood.

The land value is determined by multiplying the WOZ value stated in the WOZ decision for the previous tax year by the so-called neighbourhood street quota. Different neighbourhood street quotas are used for multi-family and single-family homes.

Determining the land value in a clear, objective manner for the purpose of managing municipal leasehold contracts.

Calculation of individual land quotas and neighbourhood street quotas

The neighbourhood street quota is calculated by taking the average of the individual land quotas for single-family or multi-family dwellings in a neighbourhood street. The individual land quotas are determined by deducting the standardised building value from the WOZ value, thereby obtaining the individual land value. The individual land value divided by the WOZ value is the individual land share. As the land always represents a value, the minimum individual land share is set at 5 per cent of the WOZ value. The neighbourhood street share is therefore also at least 5 per cent of the WOZ value. In addition, a maximum neighbourhood street quota of 49 per cent of the WOZ value is applied.

Considerations

The council opted for the neighbourhood street quota for the following reasons:

- This means it is not necessary to calculate the building value for each individual leasehold. Once the building value can be calculated for a representative number of properties, the neighbourhood street rate can be determined for the entire street. If the WOZ value is known for a property but the building value is not (due to a different property type or floor area), a land value can still be determined.

- The neighbourhood street quota takes account of differences in location. Even over very short distances within a neighbourhood, there may be a significant difference in the level of land value. Opting for a higher level of detail – for example, using neighbourhood quotas – would partially average out this difference in value.

- Using a ratio of the WOZ value takes account of the differences between properties at neighbourhood and street level. For example, a property with a lovely view and a roof terrace, or one with a garden, is assigned a higher land value because its WOZ value is higher than that of the properties on the intermediate floors. The quotient assigns a unique land value to individual properties.

The methodology is consistent and transparent. The WOZ value is known to everyone, and leaseholders have had the opportunity to object to it. Similar property types with the same level of maintenance have been assigned the same building value.

Human intervention

The BSQ is calculated by the data team of the Land Price Advisory Team (TAG), which forms part of Strategy and Advice, Land and Development.

The calculation is carried out annually and independently, without the involvement of the local authority, by external researchers on the basis of the policy rules adopted by the council. The researchers’ aim in this regard is to assess whether the policy rules are being implemented adequately.

Any discrepancies in the interpretation of policy rules (between researchers and civil servants) are investigated further, and any shortcomings identified are rectified, for example by tightening up the policy or amending technical assumptions. Once the BSQ implementation methods and principles have been aligned, the BSQ code is approved (for use in land value assessment) by the external researchers.

There is therefore a dual check (internal: carried out by civil servants, and by external researchers) and a guarantee that the policy rules are implemented correctly.

Risk management

Risk 1: incorrect BSQs / incorrect implementation of the policy rules adopted by the board

Mitigating measure 1: to address this risk, the BSQs are assessed annually by external researchers.

See explanation under ‘Human intervention’

Combining datasets:

The BSQ algorithm is run using linked data sources. This involves linking WOZ data to leasehold data. Personal characteristics are removed from the datasets and are not used. 

Legal basis

Adoption of the Amsterdam 2017 Regulation on the Allocation of Land under Long-Term Leasehold. (2017, No. 199/425)

https://zoek.officielebekendmakingen.nl/gmb-2017-140580.pdf

Elaboration on impact assessments

There can be no question of an objection within the meaning of the General Administrative Law Act, as the land value assessment takes place within the framework of a legal transaction under private law.

Through the Transfer Scheme and the Land Value Policy, the local authority has ensured that it applies the land value assessment system correctly by having the land value assessment methodology externally reviewed and by implementing a procedure for handling complaints from leaseholders regarding their

offer.

The municipality has deliberately opted for a model-based method, as it is not possible to carry out a calculation for every individual case, whilst this approach still allows a land value to be determined for almost all properties. Furthermore, a model-based method was chosen to create an objective and transparent system.

Parameters within the system that cannot be influenced must be excluded from the appeals process. This concerns the WOZ value – as the possibility to lodge an objection or appeal is already available in this regard – the type of dwelling and the

geographical subdivision into neighbourhood streets, as well as parameters recommended by an objective external party, namely the building value.

Leaseholders may only raise objections regarding variables not determined in advance. These are bespoke BSQ and/or unencumbered values. There are two ways to raise objections with Land and Development.

1). Procedure for raising objections by non-private individuals

Objections to the unencumbered value and/or bespoke BSQ as set out in the Transfer Portal may be raised by the leaseholder at any time. As the Transfer Offer has a limited validity

, objections to the unencumbered value and/or bespoke BSQ as set out in the Transfer Offer must be submitted six weeks before the offer expires.

2). Leasehold Disputes Committee for private individuals

From 15 September 2025, the Disputes Committee will handle objections from private leaseholders. An objection may be lodged if the leaseholder disagrees with the offer or with an imposed penalty. The Disputes Committee will then assess the objections submitted.

Operations

Data

1. Hermes (leasehold data): for identifying dwellings (properties) to be used in determining the BSQ.

2. WOZ value sub-code level: to determine the WOZ value, the level of reconstruction costs and the individual land quotas (input for BSQ calculation).

3. BAG: for linking Hermes and WOZ data and for verifying address details (Hermes / WOZ).  

Reconstruction cost estimates: to determine the level of reconstruction costs per property. 

Technical design

The residual land value method is based on the premise that the proceeds (WOZ value) minus the costs (building value) yield the land value. The use of the BSQ to determine land value should be regarded as a standardised application of the residual land value method. Standardised, because:

• standardised criteria and assumptions are used, rather than determining specific assumptions for each property;
• The BSQ is calculated by averaging the individual land quotas of single-family or multi-family dwellings in a neighbourhood street. The calculation is not based on dwelling-specific outcomes, but on the average land quota at neighbourhood street or neighbourhood level.

The BSQ calculation is subject to policy frameworks and rules regarding the use of WOZ values, building values and the determination of the BSQ. A neighbourhood quota (BQ) is also determined for the purposes of the BSQ calculation. The BQ has two functions: on the one hand, it serves as a benchmark for measuring the ‘usability/representativeness’ of the BSQ; on the other hand, it serves as a substitute value if the BSQ is deemed unusable.

See the following link for an overview of the policy: https://www.amsterdam.nl/wonen-leefomgeving/erfpacht/nieuw-beleid/archief-grondprijzen/

 

Summary of the calculation method

The BSQ is calculated in accordance with the policy rules (see table above) laid down in municipal policy. Broadly speaking, the following elements and process steps are important for calculating the BSQ:

1. Generating the working file: the BSQ is calculated on the basis of a working file in which WOZ data and values are linked to the municipal leasehold register (Hermes data).
2. WOZ property filter: not all properties are included in the BSQ calculation. This is subject to various criteria. Unusable or unsuitable properties are filtered out and not included in the determination of the building value and individual land quota.
3. WOZ values: for the BSQ calculation, it is essential that the WOZ values have been issued (WOZ decision issued to the interested party). The WOZ value per property serves as input for determining the individual land share.
4. Building values: for each property, the building value is determined on the basis of standardised reconstruction cost estimates. The building value is calculated using the WOZ property characteristics. No data sources other than the WOZ data are used for this calculation.
5. Individual land quotas: the individual land quota serves as input for determining the BSQ and BQ. For each property, the individual land quota is determined using the following formula:

1. Gross BSQ and BQ: for each neighbourhood street or neighbourhood, the BSQ and BQ are determined on the basis of all the calculated individual land quotas.
2. BSQ criteria regarding usability, representativeness and capping limits: the gross BSQ and BQ are subject to policy rules and assessed for representativeness and usability; the minimum and maximum BSQ values are also adjusted. For each neighbourhood street, a decision is made as to whether the BSQ or BQ should be used. In addition, the BSQ values are also checked against minimum (5%) and maximum (49%) thresholds. If the minimum threshold is exceeded, the BSQ is capped at 5%; if the maximum threshold is exceeded, a cap of 49% is applied.
3. Net BSQ (BQ): the final BSQ is aggregated for each neighbourhood street and written to an output file.

See the diagram below for an overview of the calculation method described above.

External provider

Has been developed and is managed in-house