Real estate has always been considered a good investment in Belgium. It must be said that between 1980 and 2010, real estate increased by an average of 10%. This is what is commonly referred to as the “Thirty Glorious Years.” In truth, if we compare with financial investments, we take no risk in stating that it was indeed a profitable investment for a prudent investor, even though it is evident that investing in real estate is not always a walk in the park. We think of troublesome tenants but also of obsolescence, not to mention the significant evolution of energy preservation standards. In 2014, is real estate investment still as justified? What are the medium and long-term prospects? As the next Batibouw exhibition approaches, our consultants answer these questions.
The real estate market is undergoing a crisis
The growth of the real estate market still exists, but it is no longer comparable to what we experienced during the “Thirty Glorious Years.”
Houses
Throughout 2013, the annual price of houses was €233,959, an increase of 3.2% compared to 2012. Unsurprisingly, house prices are higher in Brussels (€410,194 on average), followed by Flanders (€250,281) and Wallonia (€176,176).
Apartments
For 2013, the average price of apartments was €204,181 in Belgium, with significant differences depending on the regions: €155,610 in Wallonia (+1.7%), €204,402 in Flanders (+2.1%), and €228,408 in Brussels (+4.2%).
Conclusion
Real estate remains a growing market, but this growth is no longer comparable to what we have known in the past. Brussels remains the best place to invest. The quality of the chosen location remains fundamental. Be careful, the profitability of a real estate investment depends on several criteria (long-term evolution of the chosen location, quality of materials used, quality of your tenants).
Investing in real estate?
A choice that remains interesting if you combine the capital gain realized in the long term and the income related to renting. However, be careful to buy a property of good quality, adapted to environmental standards, located in a promising area, and to the quality of your tenants.
Long-term prospects
Without being able to predict the future, we can certainly say that the world population will only increase and space will become scarce. The phenomena of urban concentration, both socially and professionally, are only intensifying.
Prices should therefore continue to rise but not in the same proportions as over the past thirty years. A growth of 2 to 4% per year seems more reasonable to us.
30 years of presence in the real estate market
Our company can justify extensive experience in the mortgage credit market. We are at your disposal to provide answers to your questions.