ING bank predicts an increase in house prices in 2025. Here’s why.
The year 2025 should be marked by a gradual return of buyers to the real estate market after two years of wait-and-see, predicted Monday ING in its latest real estate study. This increase in the number of transactions should put upward pressure on residential property prices, according to the bank, which expects an increase of 3% in 2025.
“Stabilization of mortgage rates, wage indexation, reduction of registration fees, lack of available property and changes in legislation create an environment in which property prices are expected to rise more sharply again“, explains Alissa Lefevre to the media L’Echo, economist at ING and author of the study.
More accessible housing in 2024
If 2023 had been characterized by a low number of real estate transactions and new constructions, accessibility to property improved slightly in 2024.”Incomes continued to be indexed in reaction to the wave of inflation that we experienced, while interest rates eased a little.“, explained Philippe Ledent, expert economist at ING, during an online press conference.
According to the lion sign, there will be no further decline in long-term rates on the markets over the coming months. “Further rate cuts were recently announced by the European Central Bank, but these movements have already been anticipated in interest rates“, observes Philippe Ledent.
An increase of 3%
ING economists therefore expect many buyers to abandon their current wait-and-see attitude once they realize that interest rates will not return to pre-2022 levels.”Income will continue to be indexed in a market which should become more accessible“, it is emphasized. Furthermore, the reduction in registration fees in Wallonia should stimulate demand for housing, although the abolition of housing vouchers could weaken this effect.
As a result, the number of transactions is expected to increase more sharply in 2025, which will support price growth. The bank expects average house price growth of 3.0% in 2025 and 3.8% in 2026, following a smaller increase of 0.5% in 2024.
The real estate study, carried out by Ipsos at the request of ING, also reveals that more than half of Belgians consider that buying housing is currently unaffordable. “The majority of respondents are also convinced that the accessibility of energy-efficient housing will only get worse due to tougher environmental legislation, while only 34% think the same for energy-intensive housing“, points out the study.
The survey further shows that 74% of owner-occupiers have carried out at least one renovation over the last three years while on the rental market only 38% of owners have done so. For 65% of owners, these renovations are carried out with the aim of saving energy. While the European Union aims for carbon neutrality by 2050, only 8% of Belgians justify their renovation work by concern for the environment, with more than half of the population in fact ignoring the European climate objective and its implications. related rules.
Finally, it again emerges from the ING study that Belgians attach increasing importance to the energy efficiency of their homes. Thus, 54% of Belgians consider energy efficiency as essential to determine the price they are willing to pay, compared to 18% in 2021.
Real estate prices drop in registration fees
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