Belgian Property Market Review 2023: Sales Decline, Prices Remain Stable

Introduction

According to the property barometer published by the Federation of Belgian Notaries (Fednot), the property market slowed during 2023. Despite positive variations in Brussels and Wallonia, the overall market recorded a 1.1% decrease in activity. However, this figure should be put into perspective, particularly when compared with 2020. Between 2020 and 2023, despite the 1.1% decrease in activity, the property market recorded a remarkable increase of 11.2%. 

Property Market Activity in 2023: An Overview

The barometer reveals that property market activity fell by 1.1% nationally. Brussels and Wallonia showed signs of resilience, with respective increases of 0.4% and 0.9%, while Flanders contributed to the overall decline with a drop of 2.4%. Despite the decrease compared with 2022 and 2021, 2023 still saw an increase in transactions compared with 2020 and 2019.

Sales in 2023: A Sharp Decline

Sales were particularly affected, recording a significant drop of 15.2% compared with 2022. Experts attribute this decline to rising interest rates and the general economic situation, which led to a cooling of the market. It is important to note that the property index for 2023 includes, for the first time, transfers of property as part of an inheritance. Consequently, overall activity did not fall too sharply, but the substantial decline in the number of sales indicates that buyers faced certain difficulties last year. 

Regional Breakdown of Sales

All regions saw a decrease in the number of sales in 2023. Wallonia showed disparities between its provinces, with Walloon Brabant (+4.2%), Hainaut (+3.2%) and Namur (+3%) bucking the downward trend in activity.

Price Trends

Compared with 2022, the average price of a house in Belgium rose slightly by 1.1%, reaching 322.780 euros in 2023. The average price of a flat increased by 1.6%, reaching 264.792€. However, this growth was below inflation, indicating a slight decrease in real terms.

Would you like to know the average price of houses or flats in your province, region or neighbourhood? Consult the property price barometer. Please note that these figures are only averages… To find out the true value of your property, we recommend contacting a reputable estate agency. At J&J Properties, we offer a free property valuation with no obligation on your part: Click here to request your valuation 

As the notaries’ press release is more comprehensive, we recommend taking a look if this subject interests you: https://www.notaire.be/nouveautes/detail/limmobilier-en-2023-les-ventes-en-forte-baisse-les-prix-relativement-stables 

Buyer Profiles

The average age of buyers increased slightly, from 39.2 years in 2022 to 39.5 years in 2023. The proportion of young buyers fell slightly, accounting for 29.3% of buyers in 2023, compared with 30.3% in 2022. These figures indicate that it is becoming increasingly difficult for younger people to become homeowners. Indeed, interest rates, the current economic situation and lending criteria are making access to home ownership increasingly difficult for this age group.

New-Build vs Existing Flats

The share of new-build flats decreased, accounting for 14.8% of sales in 2023, compared with 19.5% in 2022. The price of new-build flats increased by an average of 5.7%, while existing flats saw a more moderate rise of 1.9%.

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Energy Trends

Energy efficiency is becoming a key factor, with an increase in energy-efficient homes in 2023. Prices for homes with energy ratings from A+ to D rose, reflecting growing demand for greener properties.

Flanders had the highest percentage of houses and flats with an energy rating from A+ to D, at 69.3%. In Wallonia, this figure stood at 41%, while in Brussels it was slightly lower, at 32.8%.

In terms of prices, a house or flat with an energy rating from A+ to D cost an average of 230 000 euros in Wallonia. In 2022, this average price was 225 000 euros. For properties rated from E to G, the average price in 2023 was 179 000 euros, compared with 177 500 euros in 2022.

In Brussels, a home rated from A+ to D was valued at an average of 288 000 euros in 2023, representing a slight decrease of 2 000 euros compared with the previous year (290 000 €). For properties with a rating from E to G, the downward trend continued, with an average price of 300 000 euros in 2023, compared with 305 000 euros in 2022.

Conclusion

In conclusion, the Belgian property market faced challenges in 2023, marked by a decline in sales and relative price stability. The outlook suggests a possible recovery in the second half of 2024, once the market has absorbed fluctuations in mortgage rates and construction costs. Energy trends and regional diversity remain key areas to monitor as the Belgian property market evolves.

This article is based on the notaries’ barometer for 2023. For more information:  https://www.notaire.be/nouveautes/detail/limmobilier-en-2023-les-ventes-en-forte-baisse-les-prix-relativement-stables 

You can also download the PDF of their press release by clicking here.