Press release: Price increases for the first time in a year
Real estate in Belgium became slightly more expensive in the second quarter of 2023: house prices rose by 1.12%, and apartment prices by 1.23%, based on analyses performed by real estate data platform Realo on the latest property listings data in Belgium. This is noteworthy, as the last time prices rose this much dates back to mid-2022.
All indicators have been pointing towards a cooling real estate market in Belgium for some time. However, in the figures from the last quarter, we may be witnessing the first signs of change. After a long period of nearly stable prices, house prices increased by 1.12% in just three months, and apartment prices rose by 1.23%. Price changes compared to the same quarter last year are largely due to the surge in the last quarter (houses vs. Q2 2023: +1.49%, apartments vs. Q2 2022: +1.64%).
The price increases are noticeable in all regions. Flanders saw the highest price increases (houses: +1.14%, apartments: +1.25%), followed by the Brussels-Capital Region (houses: +0.91%, apartments: +1.09%), and Wallonia (houses: +0.88%, apartments: +0.62%).
Fabrice Luyckx, data analyst at Realo: "There are several possible explanations for the recent price increases. Firstly, inflation continues to decline, giving households slightly more space in their budget. Secondly, interest rates have remained relatively stable for some time without any prospects of significant declines, which may be encouraging hesitant buyers to make a purchase. Lastly, real estate activity is typically higher in spring than at the beginning of the year, creating slightly greater competition for buyers in the market. Therefore, it remains to be seen whether the same upward trend will continue after the summer."
A house costs 353,586 euros, an apartment 268,954 euros
In the second quarter of 2023, the price of a detached house measuring 170 m² with 3 bedrooms and a garden in Belgium was 353,586 euros. When looking within the regions, a similar house in Flanders cost 386,808 euros, in Wallonia 324,639 euros, and in the Brussels-Capital Region 565,403 euros.
For an apartment with a living area of 95 m² and 2 bedrooms, the average price across Belgium was 268,954 euros. In Flanders, the same apartment cost 285,297 euros, in Wallonia it was 229,230 euros, and in the Brussels-Capital Region, the average price was 345,874 euros.
New-Builds Taking a Different Course
The figures exclusively refer to existing properties and do not take into account new-build homes. The new quarterly data from the New-Build Index, developed by Realo in collaboration with neighbourhood developer Matexi, also indicates that prices in the new-build market are continuing to evolve differently: the prices of new-build apartments increased by 4.74% over a year, and new-build houses by 6.57%. For now, the prices for new-build properties show no signs of slowing down but continue to grow at a steady pace.