Knight Frank Research Company has produced a report showing how residential property in Belgium is now attracting investors. The advisor says that since the onset of the financial crisis in 2008, the Belgian residential market has performed relatively well compared to other property sectors and residential markets in similar European countries. However, despite very low interest rates, some buyers have been postponing purchasing decisions in view of the uncertain economic climate, particularly where jobs are concerned.
Knight Frank noted that it has observed a «dramatic increase» in demand from private investors who have turned to the residential market as an alternative to placing their capital on the highly volatile financial markets. The net result is that while there has been a decrease in the typical owner-occupier category, the increase in private investors has led to a degree of stability in the overall market. As a result of this activity, average prices have risen slightly more quickly than the rate of inflation – proving the value of this type of investment.
The largest market in Belgium is quite naturally Brussels, and here, as with the office market, the residential market is strongly underpinned by the presence of the European Parliament, Commission and institutions, all of which draw in numerous types of bodies from all of the member states and beyond. This trend is forecast to lead to the population of Brussels growing significantly over the next decade or so. The Brussels authorities and private developers are spearheading a drive to create more residential accommodation to cope with this, but it is considered by many experts to be unlikely to keep up the same pace as the growing population, and housing prices may well continue to rise.
The growing and aging population is leading to increased demand for the ‘peripheral’ categories of residential property – old people’s homes, crèches, health centers… These are themselves forming a new asset class and investors are beginning to see the long term value of investing here. Just as investors have turned away from ‘offices only’ towards retail and logistics, it seems that residential accommodation too is now taking its place in the real estate market.
Source: http://www.pro-realestate.be/news-view.asp?ID=74810&L=uk&rubr=&ch=NEWS