2023-07-15 17:46:00
For three years, the real estate market has been going through successive crises more or less well. After the rush of purchases and the meteoric rise in prices of 2020 and 2021, the economic crisis born from the war in Ukraine led to a significant decline in the market. First there was the explosion in the price of materials, in particular for renovation, then the distrust of the much less well rated at the level of the PEB, and finally the rise in mortgage rates. According to the latest data from the Trevi Trust Monitor, published by the Trevi group, therefore, the market is not in a good position at present. “Confidence in the real estate market is better than at the beginning of the war in Ukraine, but the financial parameters are more feverish. The TTM for the second quarter of 2023 confirms that the real estate market is, in general, in pause mode. In particular, the number of requests from people wishing to invest is decreasing. The supply of goods on the Belgian real estate market – usually a housing market – increased by 17% for houses and 10% for apartments. A new balance between supply and demand is slowly but surely being established following two atypical years in the sector. The Trevi agencies are seeing a drop in house prices of 4 to 5% and apartments of 3.5% on average”, we learn.
Small revolution in Brussels real estate: buying cheaper accommodation… but without the land
The return to normal therefore seems to be beginning for the goods purchases market, even if the trend is not yet positive. On the other hand, there is a significant increase in the rental market. Since real estate prices remain very high and interest rates cause buyers to lose purchasing power, they fall back on renting. “A growing number of people are staying longer in the rental market. As a result, rents continue to rise. The rents recorded by Trevi agencies on the real estate market have increased by an average of 10%, from the last half of 2022 to the second half of 2023. Finally, more people are opting for co-living in order to live at a lower price. affordable near their place of work, often in town. It is especially young professionals who are attracted to this way of life.”
That said, the outlook remains positive for the future, according to Kim Ruysen, managing director at Trevi. “We see that the market is starting to adjust to the new situation linked to the rise in interest rates. The first price adjustments on energy-intensive properties requiring renovations are accepted by the market,” he notes.
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