Property Index 2024
Overview of European residential markets
While real estate in Belgium is less expensive than in many other European countries, the combination of higher borrowing costs and rising property prices has worsened housing affordability, reveals the thirteenth edition of the Deloitte Property Index. Average prices in Belgium increased by 3.4% in 2023.
In Europe, the rise in interest rates last year is significantly impacting the residential mortgage markets. Borrowing costs have surged, making mortgages less affordable for many homebuyers. This has led to reduced demand for purchasing real estate, particularly affecting first-time buyers.
Northern and Western European countries, with stronger economies and higher property values, face more pronounced affordability challenges compared to some Eastern and Southern European countries. The average transaction price for new residential buildings in Belgium is €3,207 per square meter. This represents an increase of 3.4% compared to the previous year.
As homeownership becomes less affordable, demand for rental properties has surged, pushing up rental prices and creating a cycle of housing unaffordability.
Despite being less expensive than other European countries, Belgium is not an exception. According to the OECD, 20% of the Belgian population is at risk of poverty or social exclusion. In Brussels, this percentage is close to 40% and Brussels is facing a huge challenge in delivering social and affordable housing with more than 60,000 households on a waiting list.
The different Belgian governments will need to be creative to solve this potential housing crisis in the coming years.
Previous year's reports
Sam Sluismans
