Real Estate on the Move: The Latest Trends
Are rising real estate prices just the beginning?
According to the Belgian statistics agency Statbel, Belgium’s population is projected to reach around 13.5 million by 2050. All these people will, of course, need a place to live. With such a growing population, combined with an aging demographic, demand for real estate will continue to rise. And prices will rise in direct proportion, of course.
Recently, the coronavirus crisis has added even more pressure to the situation. The pandemic has dealt a severe blow to our economy. Yet it is striking that consumers are investing even more in a home than before, as a kind of safety net for the future. At the top of the wish list are homes with a garden or terrace, not too large, and preferably move-in ready. The reason for this has everything to do with COVID-19: customers want to be able to go outside and fully enjoy their free time.
“Today’s homebuyers are less interested in renovating a home themselves and would rather spend their free time with family and friends. This, combined with the sharp rise in the price of building materials, has made renovation projects less appealing.” – Koen Hoste, Strategic Director at Living Stone
Why would you bid above the asking price?
Before the pandemic, you would buy a home for the asking price or make an offer just below it. But the lockdown put everything on hold. Viewings could no longer take place, and waiting lists grew longer and longer. If 30 prospective buyers offer the asking price, who gets the home? Living Stone took a creative approach to these challenges and devised a digital solution. Viewings were spread out over several days, after which prospective buyers submit an offer on a home via Living Stone’s digital platform. There are two ways to bid: you can bid publicly against other buyers, or you can submit your highest bid privately. This encourages buyers to stretch their budget.
“The term ‘outbidding’ is popping up a lot in the real estate market these days. It’s a situation over which we unfortunately have no control. As a buyer, you’re pressured by the limited supply. If you really want a home, you’ll push the limits.” – Thomas Valkeniers, CEO of Living Stone
Looking for more affordable housing in the city?
The fact that cities are bursting at the seams is old news. Families are fleeing the city center in search of greener, more affordable areas. Makes sense! But what are we seeing now? Due to the lockdown, the areas surrounding cities have become so sought-after that prices there are skyrocketing faster than in the city center itself. You can draw circles around major cities: for example, living in the first circle of Brussels, close to the Grand Place, is unaffordable. Many families therefore opt for a home in the second, third, or fourth circle. The result? Rising real estate prices all the way out to the green outskirts.
“Those outer suburbs are becoming so crowded that prices are catching up with those in the city center. Living outside the city is the new chic. The farther from the city, the greener it is—and the more prices rise.” – Thomas Valkeniers, CEO of Living Stone
Is investing in real estate still a good idea?
With current prices, renting seems more affordable, but appearances can be deceiving. With sky-high demand for housing, renting will only get more expensive. Don’t forget that paying monthly rent can be quite a burden once you reach retirement age. A paid-off home means the freedom to save and long-term security. Moreover, a home doesn’t have to be paid off within 20 to 25 years. Look at the Netherlands, where it’s possible to pay off a home over a period of 50 years—often spanning two generations. That model will likely make its way here as well, since loans are becoming increasingly burdensome for young first-time buyers.
“Approach a mortgage payment plan wisely and spread it out over a long period. A home may cost a lot of money, but that doesn’t mean it has to be expensive. In my entire career, I’ve never met anyone who was unhappy with a real estate investment.” – Thomas Valkeniers, CEO of Living Stone
Living Stone, Real Estate Agent 2.0.
Buyers purchase homes in the blink of an eye, sometimes without even having visited the property. And as a real estate agent, you naturally facilitate the sale. Once the keys are handed over, contact with the agent usually ends, and the client goes out on their own to find an expert to renovate the home. Or the client may want additional advice on taxation, inheritance taxes, or energy subsidies. It’s a missed opportunity not to capitalize on this. Driven by this ambition, real estate agency Pajota and Living Stone merged in the spring of 2021. By combining people, resources, and networks, Living Stone can provide a much more comprehensive range of services across all areas of real estate. This means we have the right expert on hand for every question. In this way, we make a difference in the market and offer added value as a real estate agency 2.0.
“Being a real estate agent is just one part of what Living Stone does. We aim to be a knowledge hub for our clients on all aspects of real estate. We call this a 360° service. We won’t settle for anything less.” – Koen Hoste, Strategic Director at Living Stone
Do you have questions about buying or selling real estate?
With a wealth of experience and expertise, Living Stone is here to help you navigate the real estate market!