After falling prices in the first three months of the year, the value of real estate is soaring. + 4.5% in Brussels, + 3.9% in Wallonia, + 2% in Flanders … A small surge before a lull or a trend made to last?
The love of Belgians for bricks is not cooling off. But at this moment it is better to sell than to buy. In the second quarter of 2017, the average price of a home in Belgium was 239,251 euros, we learn from the new barometer of notaries. This is a 3% increase compared to the first quarter, which was a record in number of real estate sales in the residential market.
Concerning houses, this rise is 4.5% in Brussels (to 434,606 euros) and 3.9% in Wallonia (to 183,670 euros). This increase has been seen in all of the Walloon provinces except Namur according to the notaries. In Flanders, house prices remained relatively stable, with an increase of 2% (to 264,037 euros). “The decline in the average price of dwelling houses observed in the first quarter of this year does not therefore appear to be continuing. In the last quarter, the average price has not only increased in Belgium but also in the three regions,” said Bart van Opstal, spokesman for notaire.be.
The average price of an apartment in Belgium also increased by 1.9% compared to the first quarter of 2017 to 218.599 euros. The increase in the period was 2.4% in Flanders (to 224,493 euros) and 1.1% in Brussels (to 236,065 euros), while prices remained stable in Wallonia (+ 0.1% to 171,788 euros). As for the average price of a building plot in Belgium, it fell (-0.16%) to 138,246 euros, but the average price per square meter increased by 5.3% to 191.1 euros.
If the price of property is increasing, what are the effects on the real estate market? Almost immediate … across the country. Notaries not only note a decline in the number of mortgage loans signed (-17.3% compared to the first quarter), but also a drop in the number of transactions. Thus, in Flanders, which is traditionally a fertile ground for real estate, the number of real estate transactions fell by 2.9% in the second quarter. And this decrease has plagued the rest of the country which shows a decline of 1.4%. A paradox, while Brussels grew by 5% and Wallonia remained stable. “It is in Walloon Brabant that we are currently selling the most,” says Bart van Opstal. The province showed the most sustained growth in the country, with a 2.9% increase in the number of real estate transactions during the quarter.