Across most of Belgium, the cooling down of the property market in 2023 hardly budged prices. In Brussels, however, a very small decrease was recorded.
Last year was marked by a palpable slowing down of the Belgian property market. This trend was confirmed by the latest Real Estate Barometer of the Federation of Notaries (Fednot). As far as sales were concerned, 2023 was exceptional: a decrease of -15.2% was recorded compared to 2022.
"The interest rate rises and the general economic situation clearly caused the market to cool down," said Notaris.be spokesperson Bart van Opstal. He noted that the number of sales indicates that a significant proportion of the buying public was struggling last year. "In 2023, there were just over 210,000 sales in our country. In 2022, this figure was around 248,000."
The number of sales fell in the three regions but was most pronounced in Flanders, where sales dropped by -16.9% compared to 2022. In Brussels and Wallonia, the decline was -12.4% and -12.1% respectively. However, the housing market in Belgium was at an exceptionally high level after the post-pandemic boom, meaning that even with a slump, transactions are still historically high.
Prices not budging
Despite the drop in transactions being a longer-term phenomenon, driven by sky-high mortgage rates, the Belgian average and median property prices have barely fallen. In some segments, they have even increased.
Following the summer of 2023, experts predicted that it would eventually affect prices. However, confidence in the real estate market and the strong desire of Belgians to own their own home has resulted in a delay in the change of prices.
The average price of a residential property in Belgium was €322,780, up by 1.1% from 2022. "Taking into account the difference in terms of inflation between 2023 and 2022, it was a price decrease of -1%," Fednot noted. However, since 2019, the price has increased by 22.8%.
In Flanders, house prices rose in the first half of 2023. However, a sharp price decrease occurred in the final few months of the year, marking the first price drop in a decade, a recent ERA report showed. However, Fednot confirmed that, over the entire year, the average price of a residential property rose by 2% to €358,677.
In Wallonia, the price of a residential house clocked in at €240,649 (+2%). Only in Brussels has the price dropped, even without taking inflation into account. The average cost of a house here was €562,489 (down by 2.4% since 2022 but 21% more expensive than in 2019, when the cost was €465,000). The slump in Brussels prices can be explained by the fact that Brussels' properties are in a higher price category, making them more sensitive to higher mortgage rates.
The average price of a flat in Belgium was €264,792, a price increase of +1.6% compared to 2022. However, when taking inflation into account, there was a price decrease of -0.5%.
Again, only in Flanders did the average price rise (by 3.3% to €276,450). In Wallonia, the price remained stable at €199,130 on average, while in Brussels, there was a -0.3% drop to a price of €280,520.
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Remarkably, the average price of a three-bedroom flat in Belgium did rise, by 11.8% compared to 2022, to €364,961. This is almost 40% more than a two-bedroom flat.
A new-build flat costs an average of €325,724, 5.7% more than in 2022, while an existing flat costs an average of €255,156. The larger cost (new-build flats are on average €70,000 more expensive) resulted in the share dropping from 22% in 2019 to 14.8% in 2023.
"Buyers are increasingly looking for an alternative to an energy-efficient flat on the existing market," said van Opstal. However, the prices for these properties are stabilising.
