What is the outlook for the Belgian real estate market in 2019 after 5 years of strong dynamism? Very good considering the first quarter figures released by the Belgian Notary Federation! Across the country, activity increased by 7.9% compared to the first quarter of 2018 and by 5.5% compared to the previous quarter. Engel & Völkers analyses these figures in detail, which reflect a particularly lively market...
More Belgians than ever before are buying: Belgium records a record number of transactions in the first three months of the year. All regions are affected by this increase in the number of transactions: compared to the first quarter of 2018, the Brussels-Capital Region recorded a 5% increase, while in Flanders and Wallonia it was 8%. Compared to the fourth quarter of 2018, the number of transactions increased by 4.5% in Wallonia, 5.9% in Flanders and 6.9% in the Brussels region. It must be said that the market is growing for the second consecutive quarter, reaching the highest level ever reached in each region!
The high level of demand is not without consequences on supply prices. A house in Belgium is now trading at an average of 253,000 euros and an apartment at 221,656 euros. An increase in the average price of houses by 1% and apartments by 0.8% compared to 2018. Over the last 5 years, house prices have risen by 11.9% and apartment prices by 10.9%. It should be noted that while inflation has long offset part of this increase, the magnitude of the latter now leads to a real increase in prices. It should be noted that the highest prices are recorded in the capital and its region, while the lowest are in Hainaut province.
According to figures provided by the Union professionnelle du crédit (UPC), during the first three months of the year, no less than 62,000 mortgage loans were taken out for an amount of 8.3 billion euros. A level of production mainly driven by loans granted for the acquisition of a home. Overall, the number of residential mortgages increased by 2.4% in the first quarter of 2019 compared to the fourth quarter of 2018. It must be noted that despite still historically low rates and the tax advantages granted in Flanders to mortgage loan holders, many Belgian buyers continue to finance their transactions from their own funds.
In Brussels, the real estate activity index exceeds 10 points for the first time. In the first quarter of 2019, real estate activity increased by 5% compared to the first quarter of 2018. In the same period, Brussels' share of the Belgian market was 6.9%.
Flanders saw its real estate activity increase by 5.9% in the first quarter compared to the fourth quarter of 2018. Almost all the Flemish provinces support this growth, but with increases of 7 and 7.5% respectively, the provinces of Antwerp and Limburg are the most dynamic. West Flanders posted a more modest growth of 3.3%, while East Flanders is the exception: its provincial real estate index was slightly higher at 20.3 points in the first quarter of 2017. Flanders as a whole accounted for 60.8% of the Belgian market in the first quarter.
In Wallonia, real estate activity in the first quarter of 2019 increased by 4.5% compared to the fourth quarter of 2018. However, there are clear differences at the provincial level. Still in demand, Walloon Brabant is recording growth in its real estate activity for the fourth consecutive quarter! With +19.8%, the market growth in Walloon Brabant is even the highest in Wallonia. The province of Liège sees its market remain unchanged at a high level. With an increase of 14.6%, the province of Namur erased the decline recorded in the fourth quarter of 2018. The other Walloon provinces also experienced strong market growth in the last quarter compared to the previous year. The number of real estate transactions increased from 9% to 11% compared to the same period last year. Only the province of Hainaut seems to be lagging behind with a small growth of 1.3%! In the first quarter of 2019, Wallonia accounted for 32.3% of the Belgian market.
In the first quarter of 2019, houses accounted for 44% of all real estate transactions in Belgium, land for just under 30% and apartments for just over 15%. A very different distribution at the provincial level! Thus, not surprisingly, in the Brussels-Capital Region, apartments represent almost 50% of all real estate transactions, houses around 30% and land barely 3%. While the provinces of Antwerp and West Flanders have a lower share than the national average for land, the latter is twice as high in Limburg. These provinces are at the extremes in terms of the apartment market: apartments account for 20% of transactions in West Flanders and Antwerp. In contrast, in Limburg, this share is barely close to 10%. Wallonia also has different figures. It is noteworthy that in the provinces of Luxembourg and Namur, half of the market concerns building or agricultural land. In Hainaut, the latter only represent a quarter of a market still dominated by houses.
This analysis is a very good omen for this year! With its 24 real estate agencies in Belgium, Engel & Völkers, whose turnover has increased by 20% since the beginning of the year, wishes to further expand its network of real estate franchises in the country. This is particularly true in Limburg, the coast, Flemish Brabant and Namur. Contact us for more information on our unique franchise system, we will be happy to introduce it to you...