Sharp increase in the nominal prices of Belgian real estate - Immo

Sharp increase in the nominal prices of Belgian real estate – Immo

Real estate prices in Belgium have risen considerably over the past year. As inflation has also risen sharply, the real increase remains limited.

House prices: up 8%. Apartment prices: + 6%. Price of building land: + 4% in Wallonia, + 3% in Flanders. Figures from the Royal Federation of Notaries for the year 2021 show significant price increases on the Belgian real estate market. This also results in high median prices. The national median house price is now 270,000 euros. By way of comparison, in 2011, this amount was 183,000 euros. The median price of apartments has reached 229,000 euros, or 59,100 euros more than in 2011. The price increases recorded in 2021 exceed the trend of recent years and reflect a somewhat overheated market. Note that these price increases were recorded during a year when inflation seriously increased for the first time in a long time. If we correct these nominal price increases by an inflation rate of 3.2%, we find that the price increases in real terms are closer to the trend of recent years.

Flanders shows the highest increases

It should also be noted that national figures sometimes mask considerable regional and local differences. The price levels in the three Regions are very variable and do not seem to converge. The Brussels-Capital Region remains by far the most expensive property market. Brussels houses increased by 5% in 2021, reaching a median price of 462,750 euros. Flanders recorded the largest increase in the housing market: plus 7%, for a median price of 300,000 euros. The gap with Wallonia, already significant, widened further: Walloon houses increased by 6%, reaching a median price of 192,000 euros.

The apartment market presents a similar picture, although price differences are more limited. A 2% increase brings the median price of apartments in Brussels to 250,000 euros. The Flemish Region follows with a median price of 233,000 euros, after an increase of 6%. In Wallonia, apartment prices increased by 3% to reach 180,000 euros.

Flemish Brabant vs Hainaut

The real estate map hides other very strong disparities. On the housing market, for example, the price difference between the most expensive province (excluding Brussels) and the least expensive province can reach 200,000 euros. In Flemish Brabant, the median house price is 360,000 euros; in Hainaut, it is 160,000 euros.

© DR

Ditto for apartments: the median price in Flemish Brabant is now 263,300 euros, against 155,000 euros in Hainaut. We should also point out the difference in price trends between Flemish Brabant and Walloon Brabant. Both provinces are known to be expensive real estate markets and price movements are often very similar. But last year apartment prices rose 9% in Flemish Brabant, while they fell 3% in Walloon Brabant.

Flemish Brabant is also the most expensive in the country for building plots: 283 euros/m2. At the other extreme, Luxembourg and its 51 euros/m2.

House prices: up 8%. Apartment prices: + 6%. Price of building land: + 4% in Wallonia, + 3% in Flanders. Figures from the Royal Federation of Notaries for the year 2021 show significant price increases on the Belgian real estate market. This also results in high median prices. The national median house price is now 270,000 euros. By way of comparison, in 2011, this amount was 183,000 euros. The median price of apartments has reached 229,000 euros, or 59,100 euros more than in 2011. The price increases recorded in 2021 exceed the trend of recent years and reflect a somewhat overheated market. Note that these price increases were recorded during a year when inflation seriously increased for the first time in a long time. If we correct these nominal price increases by an inflation rate of 3.2%, we find that the price increases in real terms are closer to the trend of recent years. It should also be noted that national figures sometimes mask considerable regional and local differences. The price levels in the three Regions are very variable and do not seem to converge. The Brussels-Capital Region remains by far the most expensive property market. Brussels houses increased by 5% in 2021, reaching a median price of 462,750 euros. Flanders recorded the largest increase in the housing market: plus 7%, for a median price of 300,000 euros. The gap with Wallonia, already significant, widened further: Walloon houses increased by 6%, reaching a median price of 192,000 euros. The apartment market presents a similar picture, although price differences are more limited. A 2% increase brings the median price of apartments in Brussels to 250,000 euros. The Flemish Region follows with a median price of 233,000 euros, after an increase of 6%. In Wallonia, apartment prices increased by 3% to reach 180,000 euros. The real estate map hides other very strong disparities. On the housing market, for example, the price difference between the most expensive province (excluding Brussels) and the least expensive province can reach 200,000 euros. In Flemish Brabant, the median house price is 360,000 euros; in Hainaut, it is 160,000 euros. Ditto for apartments: the median price in Flemish Brabant is now 263,300 euros, compared to 155,000 euros in Hainaut. We should also point out the difference in price trends between Flemish Brabant and Walloon Brabant. Both provinces are known to be expensive real estate markets and price movements are often very similar. But last year apartment prices rose 9% in Flemish Brabant, while they fell 3% in Walloon Brabant. Flemish Brabant is also the most expensive in the country for building plots: 283 euros/m2. At the other extreme, Luxembourg and its 51 euros/m2.

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