Business or pleasure? One in ten Belgians owns a second property, with some enjoying a weekend home and others earning passive income from an investment in bricks and mortar.
A BNP Paribas Fortis study published on Wednesday reveals that 1.15 million Belgians own a second property – a significant rise over the past five years (up 7% since 2022 and 16% since 2019). The real estate market has enjoyed a boost following a post-Covid lull which saw mortgage applications fall by 36% in 2022.
Now though, Belgians are turning back to the property market and show a particular preference for properties in the country rather than abroad. Interest in real estate is also growing among younger generations. The report noted that concerns about climate change seem to have little impact on where people decide to buy.
Sticking to Belgium
In 2023, 93% of second homes purchased by Belgians were located in the country. BNP Paribas says that proximity makes property management easier and increases the likelihood of obtaining a mortgage from your usual bank. Two-thirds of these were homes while the remaining third were apartments.
Two-thirds of these properties were bought as investments, most normally to be rented out. This marks a significant rise since 2019, when just 56% of properties were intended as rentals. The proportion of buy-to-rents rises even higher in Brussels, where 77% of second properties are for renting. This is similar to in university towns such as Liège, Ghent and Leuven.
Other hotspots for second properties in 2023 were the Ardennes (Spa and Verviers) and the Belgian coast (Ostend and Knokke).
Ostend. Credit: Belga / Benoit Doppagne
Meanwhile, those buying abroad settled largely in Spain (41%) and France (37%); 8% bought in Italy. Spain is favoured for its lower prices and ease of access while France "offers a number of advantages to Belgian buyers at the time of purchase or transfer of the property," according to Thierry Badot, Lending Manager at BNP Paribas Fortis. "For example, notary fees, taxes equivalent to registration fees and VAT on new properties are lower than in Belgium."
Just 14% of properties purchased abroad are then rented out.
Young buyers show their strength
One in seven buyers in 2023 were under 40, with the majority of the younger cohort opting for properties abroad (30% of Belgian buyers in Spain are under 40). BNP Fortis Paribas puts this down to the advent of teleworking.
The bank also notes that climate change and its adverse effects in certain areas do not deter Belgians from the region in question. "Looking at the figures, climate concerns are not (yet?) part of the selection criteria," it states. Buyers still prefer Spain, France, Italy and Greece despite these countries at heightened risk of droughts, heatwaves, coastal erosion, forest fires and floods.
