Real Estate Trends in 2024

New year, new rules—and 2024 is no exception. The year 2024 has barely begun, yet this year’s headlines are already starting to reveal the changes taking place in the real estate world. Let’s take a closer look at the most important changes that will affect your property and your wallet. 

Goodbye to the portability of paid registration fees

The flexibility is gone: registration fees paid can no longer be carried over in the Flemish Region. If you sell your primary residence to buy another one, you can no longer take advantage of the transferability of registration fees. 

Previously, you could deduct the registration tax you paid on your previous home from the tax you owed on your new home. Unfortunately, this deduction has been phased out since early 2022. 

Subsidy for sustainable renovation: asbestos removal and solar panels

Are you considering having asbestos removed and installing solar panels on the roof of an unheated building, such as a barn, garage, or outbuilding? Good news! Fluvius, the grid operator, offers a subsidy of 12 euros per square meter for asbestos removal. 

Although the subsidy was originally scheduled to end on January 1, you can still apply for it until the end of 2025. This is an opportunity you won’t want to miss if you’re looking to improve your building and switch to sustainable energy with solar panels.

New EPC requirements

Do you own an apartment building? If so, it’s important to know that all buildings are now required to have an Energy Performance Certificate ( EPC) for their common areas. This certificate provides insight into the energy efficiency of shared spaces such as floors, walls, roofs, and shared systems. It also includes recommendations for improving energy performance. This requirement is separate from sales or rentals and has been phased in gradually.

In addition, large non-residential units in public and government buildings —such as offices, schools, and stores—must now also have an EPC for non-residential buildings. 

My Renovation Rebate is changing

My Renovation Grant keeps renovation dreams alive in 2024, with a few subtle changes. The grant, an all-in-one program offered by the Flemish government for renovation and energy-efficient investments, remains in effect. The amount of the subsidy is determined by factors such as household income, household composition, and the type of building, with income limits indexed annually.

There is good news for owner-occupiers in the middle- and lower-income brackets: the temporarily increased premium rates of 35 and 50 percent will be extended for another year. 

1. VAT rules for demolition and reconstruction

The federal government has decided to extend the reduced VAT rate of 6% for private individuals. However, anyone purchasing a newly constructed home through a developer is no longer eligible and must pay the standard VAT rate of 21%.

However, a transitional arrangement will apply in 2024. If, as a buyer, you purchase or have purchased a rebuilt house or apartment through a developer and the environmental permit for the reconstruction was submitted before July 1, 2023, you can still benefit from the reduced rate. This also applies to all work that is paid for or invoiced before the end of 2024.

In addition, there is a transitional arrangement for individuals and legal entities in the 32 central cities, featuring a permanently reduced VAT rate of 6%. The condition is that the permit for the reconstruction of the home must have been applied for before January 1, 2024, and this also applies to all invoices and payments made before the end of 2024.

There is no transitional measure for private individuals; the 6% rate will remain in effect. Starting January 1, 2024, the reduced VAT rate of 6% will remain in effect indefinitely for projects undertaken by natural persons acting as builders. This applies to residential properties that will serve as the builder’s/buyer’s sole and primary residence for a period of 5 years and that have a habitable floor area of no more than 200 m².

Leasehold and surface rights are becoming more expensive

The registration fees you must pay when establishing or transferring a ground lease or building lease are set to rise from 2 to 5 percent. These fees are calculated based on the total amount that the ground leaseholder or building leaseholder pays to the owner.

Under a leasehold arrangement, the leaseholder has full use of a property owned by someone else. They can use the property for an extended period as if they were the owner, for a minimum of 15 years and a maximum of 99 years.

A building right is a property right on someone else’s land: it allows you to erect buildings, construct structures, or plant vegetation for a full 99 years. Unlike a ground lease, a building right automatically makes you the proud owner of those structures or green spaces. 

Right of first refusal for Brussels tenants

In the bustling Brussels Region, tenants receive preferential treatment when their rental property is put up for sale. This is because the owner must first approach the tenant before listing the property for sale elsewhere. 

With a generous 30-day cooling-off period, tenants have the opportunity to decide whether or not to accept the offer. However, it is important to note that this brand-new regulation does not apply to short-term leases.  

More expensive real estate deeds 

The cost of real estate deeds is set to rise slightly. Due to indexation, the fee for a mortgage registration ( deed of sale) will increase from 240 to 285 euros. You’ll also have to dig deeper into your pockets to secure a mortgage ( loan deed): from 230 euros (or 985 euros for loans over 300,000 euros) to 270 euros (or 1,160 euros for loans over 300,000 euros). To top it off, the fee for a discharge ( deed of discharge) is being raised from 295 to 350 euros.

Out with the old, in with the new... We understand that new developments can raise a lot of questions. Do you have specific questions about the changes? Are you wondering how certain rules might affect your real estate plans? Or are you just curious and want to discuss the future? Our team of experts is ready to clear up any uncertainties. So feel free to drop by one of our real estate offices. See you soon?