Belgium's Property Market Sees Modest Growth and Rising Transactions in 2024

Belgium's Residential Property Market Experiences Modest Growth in 2024

Belgium's residential property market is showing signs of a rebound with modest price growth and increased transaction volume in 2024. According to data, there was a 0.9% year-on-year rise in property transactions totaling 93,818 units in the first three quarters. This marks a significant improvement from the 14.6% decline witnessed in 2023. The mortgage market is also recovering, with new residential mortgage loans increasing by 10.1% year-on-year to €30.53 billion. Stabilizing interest rates have improved housing affordability, paving the way for a more optimistic outlook for 2025. These developments are expected to sustain market activity and support further price growth in the coming year.

Younger Buyers Drive Market Revival Outside Brussels

Young Belgian buyers are playing a pivotal role in the property market recovery, particularly outside Brussels. According to Brussels Signal, younger buyers under 35 have accounted for a significant surge in transactions. This trend is primarily fueled by stabilizing interest rates, improved borrowing conditions, and government incentives. However, the situation in Brussels differs, as international residents with tax perks dominate the market. The revised expat regime, enacted in January 2024, allows non-Belgian professionals to benefit from substantial tax deductions, making Brussels an attractive city for expatriates.

Flemish Region Leads in Transaction Growth

The Flemish region has seen remarkable growth in residential property transactions. Data from ReportLinker shows a 3.6% year-on-year increase to 60,078 units in the first three quarters of 2024. This region's dynamic growth can be attributed to various factors, including lower property prices compared to Brussels and favorable government policies. The reduction in registration duties implemented from January 2025 further catalyzed this growth. For instance, in Flanders, the registration duty was reduced by 2%, leading to substantial buyer savings and increased market activity.

Mortgage Market Recovery Underpins Price Stability

The revival of Belgium's mortgage market has been a crucial factor in stabilizing property prices. According to KBC Bank, the mortgage market experienced a significant rebound in 2024, with a 24% increase in mortgage requests compared to 2023. The average amount borrowed rose to €235,500 for apartments and €231,200 for houses. Fixed interest rates remain the most popular choice for borrowers, chosen by 96% of them. This stability in the mortgage market is expected to support moderate house price increases of around 3% in both 2025 and 2026.

Regional Price Variations Highlight Market Dynamics

Significant regional variations exist in Belgium's property market. The Global Property Guide notes that while the nationwide house price index rose by 3.58% in Q3 2024, the Brussels-Capital region experienced a pronounced 20% year-on-year increase in the median price of detached houses, reaching €1,020,250. In contrast, apartment prices in Brussels increased modestly by 2.7% year-on-year to an average of €267,000. These disparities underscore the unique market dynamics across different Belgian regions.

Stabilizing Interest Rates and Forecasted Growth

The outlook for Belgium's property market remains cautiously optimistic. According to The Brussels Times, BNP Paribas Fortis anticipates a 3% increase in property prices for 2025, followed by a 3.6% rise in subsequent years. The stabilization of interest rates around 3% for 20-year mortgages has boosted buyer confidence, driving sales growth across the nation. Favorable tax measures and reduced registration duties further enhance the market's appeal, encouraging both domestic and international buyers.

Future Implications for Belgium's Property Market

Looking forward, Belgium's property market is poised for continued growth, supported by a recovering mortgage market and stabilizing interest rates. The increased transaction volume in 2024, coupled with favorable government policies, sets a positive tone for the coming years. According to Engel & Völkers, sales increased by 15.7% in Q1 2025 compared to the previous year, with Flanders experiencing the most dynamic growth. These trends suggest that the Belgian real estate market will remain attractive to investors, offering opportunities for both capital appreciation and rental income.