The health crisis and the various lockdowns have triggered a major surge in prices on the Belgian property market. In fact, the rate of inflation is increasing steadily and property sales are beating records, according to the 2021 notaries’ barometer.
Smaller price rises in the first quarter of 2021
Property prices continue to rise in Belgium, but more slowly: this is what emerged from the first quarter of 2021. Taking inflation into account, the average price of a house has risen by 3.2% and that of an apartment by 2.8%.
Of course, these figures are a national average. Prices will vary depending on the type of property and its location.
Moreover, the rise in prices mainly affects Flanders, which is recording increases of 5.1% for houses and 4.6% for apartments.
Heading for a significant increase in property prices for 2021
According to the notaries’ barometer, prices will rise more sharply again as of the second quarter of 2021.
The bank ING, meanwhile, has estimated that overall, prices will increase by around 7% for the year 2021. A substantial rise due to higher-than-expected growth since the second quarter.
How do Belgians view the upward trend in real-estate prices?
The ING study indicates that 81% of Belgians think property will go up even more, hence the pressure: buyers need to act now, and quickly, before prices go up even more.
As for young people who wish to invest in real estate, they are pessimistic about this rise in prices. Most of those questioned in Belgium think that young people will find it difficult to become property owners in the next three years. Due in particular to rising prices, but also to the accessibility of mortgage loans, which is becoming increasingly complicated for young people with little if any capital of their own.
Buying a house in Belgium: important new criteria
Having spent a long time stuck at home during the health crisis, many Belgians have decided to move. We see that Belgians are looking for bigger, good quality homes in a better location. Moreover, 35% of the population of Belgium say that outdoor space has become an important criterion when buying a house or an apartment. Other factors are also decisive when purchasing a property, such as the proximity of schools, parks, public transport and shops, a good internet connection, a nice neighbourhood and a district that is pleasant to live in.
Meanwhile some owners have decided to stay in their present home but make renovations. The number of renovations is set to remain high in the coming months, given that one Belgian in five is thinking of refurbishing their home during the next year.
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