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Mortgage loans: why Belgians are regaining real estate purchasing power

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Belgian households have regained 8 m² of real estate purchasing power – out of the 17 m² lost between the start of 2022 and the end of 2023. For an average household, this real estate purchasing power reaches 115 m² in January 2025.”

The experts from Belfius and Immoweb underline the great resilience of the Belgian real estate market: “In Belgium, there has never been a shock on prices as we experienced in Germany or the Netherlands, markets which are much more volatile, with annual increases of 10% or more, then very sharp drops when the real estate market has turned around, explains Véronique Goossens, chief economist at Belfius. This resilience is explained in particular by the fact that, and this is a Belgian specificity, long-term fixed rate loans (20 years or more) are ultra-dominant (at 95%) in Belgium. But also by sustained demand (some 71% of Belgians are owners, compared to 49% of Germans) and income protected, here, by the automatic indexation of salaries..

Mortgages: how to get 1% off from your bank

A real breath of fresh air for Belgian households

But if Belfius and Immoweb are today relatively optimistic for the Belgian real estate market in 2025, it is mainly thanks to the downward movement in mortgage rates which took place in the second half of 2024: “Interest rates, which have been rising continuously since 2022, reached their peak in December 2023, at 3.69%, before beginning a gradual decline to settle at 2.92% in December 2024. This development marks a decisive turning point in market dynamics. At the same time, the average amount of mortgage loans granted by Belfius Bank recorded a notable increase, going from €207,000 in 2023 to €214,000 in 2024..

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“The mortgage credit market has been more active since mid-September”

“The improvement in financing conditions on the Belgian real estate market and the indexation of salaries at the start of 2025 (+ approximately 3.5%) have brought a real breath of fresh air to Belgian households. And they allow them to regain 8 m² of real estate purchasing power – on the 17 m² lost between the start of 2022 and the end of 2023 –, reaching 115 m² in January 2025 for a Belgian household AVERAGE”therefore conclude Belfius and Immoweb.

-> Read also: Where will the fall in sales of new apartments stop?

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