After two exceptional years in 2020 and 2021, demand has returned to normal in the most upscale segment of the residential market. Between return to the city and urban exodus, it was balanced, targeting both Brussels and its outskirts. “We are recording requests for both, but less and less for the center of Brussels because of Good Move. Municipalities with facilities are popular”, notes Sophie Stulemeijer Coene, director of Emile Garcin Brussels. In the capital, the most popular municipalities remain Uccle, Ixelles, the two Woluwe and Etterbeek. “We are sometimes asked for specific neighborhoods like Brugmann, the Étangs d’Ixelles, l’Observatoire, Stockel, etc., or even certain streets, such as avenue Molière or avenue Hamoir or even the Clos des Milliardaires for those who want prestige and security”details Frédérique Pauporté, CEO of Barnes Brussels.
The two experts take stock of the evolution of the luxury market in and around the capital.
“2023 was a peak in the French luxury market. We will have to go back down in 2024”
1) A more specific request
Those who choose to settle further from Brussels are looking for beautiful land, not overlooked and calm. “Noise pollution is not at the high end”remarks Sophie Stulemeijer Coene. “Goods with defects that were easy to sell two years ago are more complicated to sell today,” adds Frédérique Pauporté. Moreover, “Buyers are attentive to authenticity. They appreciate noble materials. We are also seeing a new trend among 30-40 year olds who are starting to want to bring old apartments back to life. They are not focused only on contemporary. They are also well informed about what to do to recover a bad PEB”, further indicates Sophie Stulemeijer Coene who adds that“while we were not talking about it in luxury real estate until recently, the question of PEB is now of great importance”.
The higher one goes in prestige, the more buyers expect to have nice things and a certain number of services. “They are not more difficult or demanding, but more specialized”says the director of Emile Garcin.
2) A question of taste and culture
“We find quality properties in the capital, with beautiful finishes and great services, underlines Frédérique Pauporté. There are great architects and the project owners have taste. Brussels has nothing to be ashamed of compared to other capitals. In London, for example, the projects are much less successful. This can be explained, among other things, by the fact that we live much more in houses than in apartments compared to other countries. We also have a culture of renovation, architecture and beautiful materials.”
gullIt’s good to do something exceptional, but we stay in Belgium. Promoters must ensure they carry out projects for which there is a market.”
3) A property renovated or to be renovated?
At the high end, buyers tend to look for properties that have already been renovated. “It depends on age too. Those under 50 still have the energy to embark on a renovation project because doing work takes time and money. And if some have the budget to delegate this task, site monitoring is still necessary”, believes Sophie Stulemeijer Coene. Older buyers will be less tempted to embark on work. Just like expatriates for whom it is more complicated.
A thorough renovation (plumbing, electricity, heating, etc.) may justify a certain price. “But exceptional cuisine can hardly be valued. The tastes of some do not always correspond to those of others”she warns.
Although many new projects are in the pipeline, not all of them see the light of day due to lack of permits. “We have a lot of requests for penthouses from clients who no longer want to maintain a garden or a swimming pool. They then live in an apartment and buy a second home in the sun”says Frédérique Pauporté.
In new properties, you still have to pay attention to the offer. “It’s good to do something exceptional, but we stay in Belgium,” recalls Sophie Stulemeijer Coene. Promoters must ensure they carry out projects for which there is a market.”
4) Prices have stabilized
“We are returning to fairer prices. 2023 has not been a great year. But we were coming from two exceptional years with a lot of demand and prices that were sometimes a little crazy,” says Sophie Stulemeijer Coene. “In the most sought-after areas, prices remain stable, but sales take a little longer, notes for her part Frédérique Pauporté. Favorites are rarer. We have just had a great sale for three million euros on Avenue de la Couronne in Ixelles. But we were surprised because the good was gone within a week.”
gullVery luxurious goods are more difficult to sell, particularly because of Good Move. People don’t want to buy a really nice apartment on a street that could one day be closed and become pedestrianized.”
Unlike what happens in other capitals, prices in Brussels remain relatively reasonable. “Amounts of eight or ten million euros are really already a lot. Most of our clients have a budget of 400,000 to two million eurosspecifies Sophie Stulemeijer Coene. Very luxurious goods are more difficult to sell, particularly because of Good Move. People don’t want to buy a really nice apartment on a street that could one day be closed and become pedestrianized.”
Do some buyers have an unlimited budget? “This can happen,” notes the director of Emile Garcin. Customers tell us: ‘it doesn’t matter the price but I want this location’. It’s the location that determines the price. If there is not a match between the location and the price, the sale will not be made.”
5) Pay the right price
Even at the high end, the buyer wants to pay the right price. “We must avoid overpricing on the part of the owner. This is why the timing of the valuation of the property is essential. The role of the real estate agent has evolved. We are increasingly asked for advice and support. It’s almost consultancy. To set the price, you must clearly explain to the owner the value of his property. It can be a little more delicious but you shouldn’t overdo it. Otherwise the property will remain on the market and the owner will be frustrated. When you sell a beautiful property with a family history, there is a lot of emotion. You have to be respectful, believes Sophie Stulemeijer Coene. In prestigious real estate, the buyer expects to have high-end services. He doesn’t like to negotiate too much and won’t dare come up with an offer with too big a discount. But there is of course always a little negotiation step. We must support both the seller and the buyer.”
Luxury stocks aren’t cheap, but that’s their appeal!
6) Who are the buyers?
The Belgian clientele is still active, but the Brussels market also attracts foreigners. French people in particular. “We are certainly no longer in the great movement of the 1990s, but the French are still there. They are no longer necessarily tax exiles or civil servants but people who appreciate the quality of life in Brussels”remarks Sophie Stulemeijer Coene, who notes another development: “We don’t only find them near Place Brugmann. They also opt for peripheral municipalities, such as Rhode-Saint-Genèse, for example. They also know the market and prices well. At the time, they were expensive. This is no longer the case today.”
Brussels also has a nice community of Spaniards and Italians who are also buying. “It’s funny to see that the search criteria differ depending on the origin. Belgians and French appreciate having an open kitchen; Italians hate”, notes Sophie Stulemeijer Coene. Without forgetting embassies, with very specific requests, such as large reception rooms or exceptional dining rooms. “You have to listen to needs. People at the high end generally know what they want or don’t want. When you work in luxury real estate, there really is customer follow-up. We create links, we meet great people, we discuss the choice of a school, for example. With Belgians but especially with foreigners. In prestige, we sell an art of living. We will talk about a magnificent park next to a beautiful apartment or a good restaurant.”
7) A rental market?
“We have some great requests for rental properties”evokes the CEO of Barnes, who echoes rents which can go up to 12,000 euros per month. “But around 6,000 euros per month, these are already good rents. Some people prefer to rent rather than buy because they don’t know if they will stay in Belgium.” “At one time, we had companies that paid huge rents for their expats. We don’t see that anymoresays Sophie Stulemeijer Coene. In luxury real estate the yield is not good: below 2%. We don’t buy high-end to rent.”
