Now that 2024 has come to a close, experts are looking back at the key trends in the property market. Potential buyers are also wondering what 2025 will bring in terms of houses and flat prices. Is this the year to invest in property?
The property market slowly recovered by the end of 2024 following a turbulent time for the sector, the Federation of Notaries' (Fednot) Real Estate Barometer showed.
"2024 was the year of stabilisation following a difficult time," notary Bart Van Opstal told The Brussels Times. He pointed to the Covid-19 period, marked by skyrocketing demand and prices, and significant declines in the number of transactions. "The drop continued in the first half of 2024 [sales were still down -7.3% compared to the same period in 2023], but this stabilised after the summer."
Over the full year, a slight decline of 0.7% was recorded, comparable to the 2023 figure. "So globally speaking, we have reached a new equilibrium." The number of prospective buyers normalised and the property supply is in line with what is expected.
Property price tag
This trend is reflected in prices. "Here too, we moved towards a stabilisation, especially if you take inflation (3%) into account."
The average price of a house increased by 2.2% to €329,743 (-0.8% when taking into account inflation). In Brussels, which remains the most expensive region in Belgium, the price rose to €570,110 (+1.4%).
Brussels house prices are €200,000 more expensive than the average in Flanders (€367,595) and €330,000 more than in Wallonia (€238,691).
The average price of a flat in Belgium rose by 2.5%, to €271,330. Taking inflation into account, this marked a price decrease of 0.5%. Brussels saw the biggest increase in the cost of this property type (+3.7%), to an average price of €290,763.
Flanders comes second: here, the average price of a flat rose by 2.2% to €282,574. In Wallonia, the price remained almost stable, at €198,531 on average (-0.3%).
Which factors are impacting costs?
Last year confirmed that the energy efficiency of a property is becoming an increasingly important factor in the real estate market. In Belgium, every sale is accompanied by an Energy Performance Certificate (EPC), scoring the energy efficiency of a home from A (best) to F (worst).
"In Flanders, homes with an A label became more expensive," Van Opstal said. "The median price rose from €350,000 to €388,000. A house with an F label became cheaper: from €246,000 in 2023 to €242,750."
Another factor is lowered registration costs. As of January 2025, those purchasing a single-family home in Wallonia must pay a 3% registration duty, down from the previous 12.5%. In Flanders, the registration duty has reduced from 3% to 2%. "This has significant tax consequences," Van Opstal said.
The new measure is applied from when the notarial deed is signed. This means people who bought a house in late 2024 but waited to sign the deed until January were also entitled to that reduction. "So the effect is already incorporated in the 2024 figures." No taxation changes were introduced in Brussels, meaning any trend is fiscally neutral.
Predictions for 2025
Van Opstal predicts that this equilibrium in transactions will continue into 2025. "Young people [who make up around 30% of the market] are probably going to remain active," he said. With the extra push offered by the lower registration rates, this will particularly be the case in Wallonia and Flanders.
Mortgage rates are also expected to drop further. "This decrease will not be sensational, because they are currently sitting between 2-3%, but this will provide buyers with extra breathing space." This will also help ensure that young people remain active on the market.
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Finally, Van Opstal expects investors to continue buying property to rent out. "We live in uncertain times. People who have additional savings will likely choose to invest in real estate. It offers a fixed value and is not subject to fluctuations in the same way as savings accounts and stock shares."
As no rush on the market is expected, no major price rises are predicted either. "If supply and demand are balanced, this also avoids fluctuations in price," Van Opstal said. "But, conversely, I don't expect strong price declines either. An increase in line with inflation is most likely."
