The Belgian real estate market has been on a rollercoaster ride in recent times. From stricter mortgage lending conditions and skyrocketing interest rates to mandatory energy renovations in Flanders and Brussels, the market has faced numerous challenges. But how has it responded to these changes? Let’s delve into the key takeaways.
1. House price trends
Contrary to popular belief, house prices haven’t decreased uniformly across Belgium. According to Statbel, compared to the first half of 2022, median house prices have risen between 2.5% to 3.3%. Interestingly, four-sided villas seem to be less in demand. Currently, the median price stands at 259,500 euros for 2 and 3-sided houses, while it’s 365,000 euros for 4-sided villas.
Did you know? These median prices are respectively 295,000 and 405,000 euros in Flanders, 480,000 and 902,500 euros in Brussels, and 175,000 and 285,000 euros in Wallonia. While the market has seen a slight dip in Brussels, especially concerning 4-sided villas, it remains stable in Wallonia and even shows growth in Flanders.
2. The robust apartment market
Across Belgium, the median prices of apartments have seen an uptick, moving from 225,000 euros in the first half of 2022 to 237,000 euros in the first half of 2023, marking a 5.3% increase. This growth rate is 4.7% in Wallonia, 2% in Brussels, and a whopping 6.4% in Flanders!
3. Decline in transaction numbers
Echoing the reports from banks regarding mortgage loans, Statbel also notes a decline in transactions: a 23% drop for houses and a 16% decrease for apartments.
4. The priciest provinces
As usual, the most expensive provinces in Belgium are Flemish Brabant and Walloon Brabant. Houses (closed or semi-closed) are priced at 350,000 and 320,000 euros respectively, villas at 455,000 and 460,000 euros, and apartments at 269,000 and 255,000 euros. When it comes to municipalities, Sint-Martens-Latem, Knokke-Heist, Ixelles, Woluwé-Saint-Pierre, and Kraainem top the list as the most expensive.
5. Proximity to France: A devaluation?
An interesting observation is that the least expensive municipalities in Belgium share a common trait: they are all bordering or are near France. This includes Froidchapelle, Dour, Momignies, and Hastière in Wallonia, and Menin, Renaix, Wervicq, Avelgem, and L’Eau in Flanders.
Conclusion
The Belgian real estate market is dynamic and influenced by various factors, both internal and external. While some regions see growth, others might experience a decline. For potential buyers and investors, staying informed about these trends can offer valuable insights and guide decision-making. As the market continues to evolve, it’s essential to keep an eye on these shifts and adapt strategies accordingly.
Open Immovlan