Real estate in crisis: what is happening in Belgium
House prices are rising but the economy is falling. No, unfortunately it is not an advertising slogan, but it is the harsh reality that Belgium is currently experiencing. It is feared that this state is in full estate bubble. Let's take a step back.
During the last quarter of last year, the general index of property prices in Belgium increased dramatically by 3%, after further previous increases that were around 2.5 percentage points. Currently, house prices are inflated by 4%, despite the weight of inflation having decreased).
Despite everything, the real estate market remains lively in Belgium. The number of real estate transactions in fact seems not to have been affected in the slightest by this circumstance. In fact, an annual increase of 3.7% was reported and the number of housing permits reached 35% (about 48,000 requests for residential construction).
After the Belgian economy came out of the recession period, which seemed to have ended, the Brussels real estate market was forced to revive prices, but not by much, as the national economy itself seemed to guarantee signs of rapid recovery.
But this did not happen . It should be remembered that Belgium is divided into four regions, administratively independent, which is why, despite the small dimensions that characterize this State, it is not easy to operate in a homogeneous way the lines of coordination in this territory.
In particular, in the Brussels region, prices have increased by 4% on an annual basis;
in the Flemish Flanders of 5.08%;
in Wallonia of 3%.
Many say that some areas are currently overrated but we know that this phase will (hopefully) only be temporary and preparatory for a more solid and strong return of this nation on an economic level.
On the other hand, residential building activity does not seem to be stopping.
In detail, it was found that in the Flemish region there was a boom in residence permits of 50% more than in the previous year, in the capital of 20% and in the Walloon region of 10%. The demand for housing is also increasing, which are preferred to lease contracts, since the houses themselves are more modernized and smart than in previous years (a valid reason to invest!).
A positive element is the very low level of mortgage rates, which encourages potential investors not to abandon the Belgian real estate market.
What to say, it is hoped that this bubble, despite not having created particular problems for the real estate market, could still erupt and extinguish the negative effects that it brings with it, to allow this nation to return on track and stand out, as it used to be, in the past. 'international economy.
During the last quarter of last year, the general index of property prices in Belgium increased dramatically by 3%, after further previous increases that were around 2.5 percentage points. Currently, house prices are inflated by 4%, despite the weight of inflation having decreased).
Despite everything, the real estate market remains lively in Belgium. The number of real estate transactions in fact seems not to have been affected in the slightest by this circumstance. In fact, an annual increase of 3.7% was reported and the number of housing permits reached 35% (about 48,000 requests for residential construction).
After the Belgian economy came out of the recession period, which seemed to have ended, the Brussels real estate market was forced to revive prices, but not by much, as the national economy itself seemed to guarantee signs of rapid recovery.
But this did not happen . It should be remembered that Belgium is divided into four regions, administratively independent, which is why, despite the small dimensions that characterize this State, it is not easy to operate in a homogeneous way the lines of coordination in this territory.
In particular, in the Brussels region, prices have increased by 4% on an annual basis;
in the Flemish Flanders of 5.08%;
in Wallonia of 3%.
Many say that some areas are currently overrated but we know that this phase will (hopefully) only be temporary and preparatory for a more solid and strong return of this nation on an economic level.
On the other hand, residential building activity does not seem to be stopping.
In detail, it was found that in the Flemish region there was a boom in residence permits of 50% more than in the previous year, in the capital of 20% and in the Walloon region of 10%. The demand for housing is also increasing, which are preferred to lease contracts, since the houses themselves are more modernized and smart than in previous years (a valid reason to invest!).
A positive element is the very low level of mortgage rates, which encourages potential investors not to abandon the Belgian real estate market.
What to say, it is hoped that this bubble, despite not having created particular problems for the real estate market, could still erupt and extinguish the negative effects that it brings with it, to allow this nation to return on track and stand out, as it used to be, in the past. 'international economy.
