Property Index 2023
Analysis and comparison of European residential markets
The real estate market in Belgium remains stable compared to its neighboring countries despite sustainability challenges and interest rate shocks, reveals the twelfth edition of the Deloitte Property Index. To tackle these challenges in the future, the government should take a holistic approach.
Belgium experienced a 2% reduction in activity in 2022 due to the challenges the market is facing. However, despite fewer transactions, prices of new dwellings maintained the same tendency with a yearly increase of 8% in 2022. Belgium is one of the few EU countries in which the number of project completions went down, decreasing 5.7%.
Rising interest rates and higher energy and construction costs are heavily impacting the affordability of home ownership and are pushing more households to the rental market. Brussels remains an interesting in terms of rental levels in comparison with other EU capitals.
Sustainability is expected to continue driving growth in the residential real estate sector. Developers and investors are increasingly adopting green building practices, integrating social features, and scrutinising the management practices of real estate companies to benefit from “green premiums”. Buyers are also turning to energy-efficient buildings to attract tenants and comply with forthcoming regulations.
A more holistic view will be needed to increase affordable, sustainable housing for everyone.
