Belgium housing remains overvalued in 2024
The rise in interest rates in 2023 has had a negative impact on house prices in Belgium. The sector’s inflation rate reached almost 2% in the second quarter of 2023 and more than 1% in the third quarter. Last year, the average was 3%.
According to STATBEL, the housing market recorded a decline in activity in the first 9 months of last year. The number of transactions fell by almost 18% year-on-year. There were 92,741 sales contracts signed.
STATBEL notes that housing costs remained stable year over year. Adjusted for inflation, prices fell by more than 3%. However, the price of new homes rose by almost 2%, excluding 5% inflation.
Overview of Belgium housing prices
Experts noted price increases for different types of property in 2023:
– two-family homes increased in price by nearly 2%;
– single-family homes increased in price by about 1.5%;
– the average cost of flats increased by more than 2%.
In 2023, a semi-detached house in Belgium sold for around €264,500. A detached house could be bought for 370 thousand euros. The market in the Walloon region offered the cheapest housing. Here, the average cost of a home was between 180 thousand and 295 thousand euros.
Price overview by municipality:
1. The most expensive apartments were in Knokke Heist, with an average price of around 490 thousand euros. The cheapest market in the region was Sint-Truiden, where an apartment could be bought for 172.5 thousand euros.
2. In Wallonia, housing was sold at a relatively low cost in Charleroi—120 thousand euros. The most expensive property was in Jamblou—290 thousand euros.
3. In the vicinity of Brussels, high prices are in Woluwe-Saint-Pierre – 352.5 thousand euros. The region of Anderlecht was more affordable – 200 thousand euros per property.
The Global Property Guide estimates that the pandemic has not affected the residential sector in Belgium. In 2020, prices rose by almost 6%. The increase continued in 2021, with a 6% increase. 2022 saw a slight slowdown, with prices rising by 4.8%. In 2023, the sector will also slow down, but property prices will still be too high.
Forecasts for 2024
ING forecasts that local housing affordability will improve in 2024. However, prices will still be less attractive than before 2022. Despite lower interest rates, analysts expect a slow recovery. They forecast that house prices will rise by around 1.5% in the current period. In real terms, this could be seen as a fall in value, especially if inflation rises above 3%.