CEO Interview: The Future of the Real Estate Market in Belgium

We’re sitting comfortably at the table with a steaming cup of coffee, engrossed in a fascinating conversation about the Belgian real estate market. Our table companion? None other than CEO Thomas Valkeniers, the driving force behind our regional network of real estate agencies. Together, we take a sip of our coffee and step into the rapidly changing real estate market, which, despite challenges, remains strong and offers plenty of opportunities. Lean back and let’s go!   

The Belgian real estate market is often described as a beacon of stability compared to other neighboring countries. Could you tell us more about what defines this stability and why Belgium stands out from other markets?

Thomas Valkeniers: “Absolutely, this is a very interesting point. The stability of the Belgian real estate market is certainly an asset. When we look at countries like Germany, France, and the Netherlands, we see that Belgium has experienced fewer price fluctuations. This makes it an attractive destination for real estate investments, even during periods of market correction.”

In your opinion, what are the key factors contributing to this stability, and why do Belgian home prices generally remain less susceptible to extreme fluctuations?

“That’s right; the Belgian real estate market does indeed show stability compared to some other countries, and this can be partly attributed to our tax structure. In Belgium, there are indeed significant costs associated with buying and selling real estate, such as registration fees. Compared to England, for example, where these costs are lower, this can indeed influence people’s willingness to buy or sell real estate. These higher costs can lead to fewer transactions, which in turn can contribute to the stability of the market.”

Furthermore, this stability can be attributed to several other factors. First and foremost, we have a traditionally cautious approach to real estate financing, which curbs speculation and prevents excessive debt. Moreover, price fluctuations in Belgium are generally less extreme than in other countries, meaning our market is less sensitive to sudden shocks. There is also a deep-rooted culture of homeownership in Belgium, which stabilizes prices because people generally stick to their quest for a home of their own, even in uncertain times.”

Despite current challenges, such as rising interest rates and geopolitical tensions, the Belgian real estate market remains remarkably stable. Could you tell us more about how Living Stone is addressing these challenges and what advice you have for potential homebuyers and investors at this time?

“Certainly, it’s true that the market faces some challenges, but we remain resilient. Our focus is on delivering value to our clients, both in terms of high-quality real estate investments and in providing expert advice. For potential buyers and investors, it is important to be aware of the long-term benefits of real estate and not to be deterred by temporary fluctuations. Owning real estate remains a solid long-term investment, and we recommend thoroughly researching, planning, and working with experts to make informed decisions that align with your financial goals.”

ING’s recent forecast for the Belgian housing market (August 2023 real estate study) suggests that home prices in Belgium will fall by 3% in the second half of the year. What are your thoughts on this?

“The predicted price decline is certainly an interesting development. Although a 3% drop may seem significant, we must keep in mind that the Belgian real estate market has historically remained stable, even during economic fluctuations. It is important to understand that this correction is the result of rising interest rates and longer sales times, which represent temporary challenges. Assuming prices do indeed fall by 3%, we need to put this into perspective relative to the significant increases the Belgian real estate market has experienced in recent years.”  

It is said that properties with poor energy efficiency ratings will be most vulnerable to price declines. What does this mean for investors?   

“It is true that properties with poor EPC ratings are expected to be more severely affected by the price decline. For investors, this means it is important to pay attention to the energy efficiency of real estate investments. Newly built homes appear to be more resilient to this price correction, which could create new opportunities for investors.” 

How can real estate investors take advantage of the current situation in Belgium?

"In times of a sluggish sales market, we often see more people choosing to stay in the rental market, which can increase demand for rental properties. This can make the rental market more attractive to investors. Now is a good time to consider investing in rental properties, as demand for rental housing may increase, which could result in a favorable return on investment." 

A growing number of Belgians are considering renovations to improve the energy efficiency of their homes. How do you think this trend will affect the real estate market?

“The focus on energy efficiency is a positive development, both for the environment and for real estate investors. The growing demand for renovations can create new opportunities in the construction and renovation sector. It is essential for real estate professionals to be aware of this trend and to explore ways to support energy-efficient projects.”

It also appears that there will be more room for negotiation in the coming months and that there may even be some bargains to be had for younger buyers. What advice would you give to this group?

“This is indeed good news for younger buyers. My advice to them would be to be well-prepared and actively look for opportunities. With a declining market, they may have more chances to find their dream home at a more attractive price. However, it’s essential that they stay focused on their financial stability and set realistic goals. A bargain is great, but it still needs to fit within their budget and long-term plans. So, be determined, do your homework, and stay patient—and who knows, you might soon find your ideal home at a great price.”

And finally, keep in mind the three most important factors when buying real estate: location, location, and location. The location of your property largely determines how sought-after it is on the market. Never compromise on location.”

Thank you so much, Thomas, for these valuable insights into the current state of the Belgian real estate market and the potential opportunities and challenges for investors. Do you have any questions about real estate? Feel free to drop by one of our real estate offices. Our doors are wide open. See you soon!