For apartments, which concentrate two thirds of sales in the Brussels region, prices increased by 2.8 points, still compared to the 3rd quarter of 2023. They have therefore stagnated if we take into account inflation. The average price of apartments today reaches 288,428 euros. It is the third most expensive region in the country after Flemish Brabant and West Flanders.
The Federation of Belgian Notaries also notes a slowdown in the Brussels market, like the situation across the country. “We see that the market is in a waiting situation almost everywhere in Belgium”comments Renaud Grégoire. This decline in real estate activity is far from insignificant since it confirms the sharp drop in the number of real estate transactions recorded during the first three quarters of 2023, around -18 points.
In question? Several elements specific to Brussels. First, the slowness of issuing planning permits, especially in certain municipalities such as Saint-Gilles or Ixelles. In Brussels more than elsewhere, the market is speculative. It is dominated by investors who buy up properties, divide them up and then resell them. “We understand that we need to put a stop to this but it sometimes becomes unmanageable”continues the notary. “Today, new projects are struggling to get off the ground because of this. This situation mainly concerns Brussels and Walloon Brabant because there are more apartments.”
Speculators are also more attentive to the influence of the geopolitical situation. The war in Ukraine has generated a rise in the price of raw materials, high inflation and therefore an increase in labor costs. This also slows down their dynamism.
Then, the announcement of the reduction in registration fees to 3% in Wallonia also slows down the Brussels residential real estate market. “We feel a certain competition between Brussels and Walloon Brabant. Potential buyers will perhaps think twice before buying a house for 600,000 euros in Brussels with high registration fees or wait for the increase to 3%. in Wallonia and buy a house of the same standard but for 500,000 euros in La Hulpe”.
Fednot expects the situation will not change until spring next year.
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