Amsterdam having about 845000 citizens observed new population inflows accounting to 10000 people annually starting from 2008, Bloomberg writes. Today locals worry that flow of newcomers after Brexit will put pressure on housing market that already faced deficit of supply and growing prices.

Amid this situation, the government of the city presented an ambitious plan in May that assumes building of 7500 additional houses through 2025. One third of newly built homes will be marked as social housing and will be rented for not more than 711 euro per month. This might make the market unattractive for investors and builders.

At the moment rent of more than 40% of housing in Amsterdam is capped to 711 euro per month. At the same time about 75% of population having income 60000 euro a year cannot find a place to live without special help.

Management of the city points out that more and more people want to leave in Amsterdam, but also are willing to invest in order to get rental income. This resulted in current situation on the market. Prices grew by 19% in the second quarter compared with the last year. Amsterdam is on the list of six cities with highest risk of having property bubble according to UBS Group.