Since the launch of the barometer of notaries in 2007, the number of real estate transactions in a third-quarter has never been as high as in 2019.Figures from the Federation of Notaries (Fednot) show, unambiguously, that the Belgian real estate market continues to grow.Thus, compared to the third quarter of 2018, we note an increase in real estate activity of 4.3% throughout the territory of Belgium. If this growth relates to the three regions, it reveals differences: the increase is 7.6% in Brussels, 5.4% in Flanders, but only 1.7% in Wallonia.However, if we compare the first nine quarters of 2018 and 2019, the increase in real estate transactions amounts to 6.6% for the whole country. Walloon Brabant holds the record for this period with an impressive rise of 13.8%.
Some feel that the sharp rise in real estate prices suggests is just a speculative bubble. However, the steady growth of real estate activity in 2019 is mainly due to external factors: very low mortgage interest rates, low and indeterminate returns of certain investments in other areas than real estate. Similarly, the fact that prices are increasing in a measured and distinctive way across sectors suggests that it is caused more by growth in real estate activity.
At the national level, we have recorded the highest increase in 5 years of the average price of an apartment. This means that during the first nine months of 2019 there has been an increase of 3.7% compared to 2018, thus increasing the average price of an apartment in the capital to € 228.356.However, Brussels is experiencing the biggest rise in the average price of an apartment. Compared to 2018, this increase of 5.5%, the highest growth in the various regions, pushed the threshold of € 250,000 to € 253,503 per dwelling.
The evolution of prices marks a difference according to the types of properties. This disparity, therefore, reflects the state of real estate availability in Brussels and Wallonia. If the average price of apartments in Brussels has increased more significantly than that of houses over the last 5 years, Wallonia has experienced an opposite trend: it is experiencing a higher rate of growth in the price of its houses compared to its apartments. This price variation is easily explained by the different consumer demand between the two regions. To hope to acquire a house, with the benefit of a garden, is virtually mission impossible in Brussels, while in Wallonia, the living environment and space make the possibility of owning a privative garden much more achievable.
This explains why apartment prices have increased more in Brussels than Wallonia since demand is higher for housing in Brussels than in the latter region.
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