Rising Prices of SME Units in Belgium
The prices of SME properties in new structured business parks have increased significantly in recent years. The demand for professional workspaces, showrooms and warehouses has increased particularly strongly in the last 10 years. This is due to the growing economy and the increasing need for flexible and professional workspaces by SMEs and independent entrepreneurs. In addition, factors such as the type of economic activity, the scarcity of land and urban planning restrictions also play an important role in determining the price.
Causes of Price Increase
The growth of the Belgian economy has led to an increasing demand for SME properties. Entrepreneurs are looking for spaces that allow them to work efficiently and professionally, which increases the competition for suitable locations for SME activities. The combination of high demand and limited availability has led to a strong price increase within this real estate segment.
Many SMEs and independent entrepreneurs are looking for suitable properties that allow them to carry out their activities in optimal conditions. A professional workspace is essential for the image of their company and offers the possibility to receive customers in a showroom or store products in a warehouse. The accessibility of the locations plays a crucial role in this. Entrepreneurs want well-located properties, close to major traffic arteries and with sufficient parking facilities.
Location and Price Differences
The prices of SME properties in Belgium vary greatly depending on the location, size and condition of the property. In urban areas such as Brussels, Ghent and Antwerp, prices are generally higher, with purchase prices between €1,700 and €2,000 per square meter (+ VAT) on the central axes. In less urban regions, prices are often lower, which can be attractive for start-ups. Here, one can buy SME properties around €1,450/m² (+ VAT).
Growing Need for Professional Space
In the period 2010-2015, the take-up of SME properties was only 20,000 – 40,000 m² per year, while in recent years these figures have risen to between 100,000 m² and 150,000 m² in transactions, often purchases but also rent. Most SME properties were sold or rented in the provinces of Antwerp, West Flanders, East Flanders and Flemish Brabant, followed by the Walloon provinces of Liège and Walloon Brabant.
Rent or buy? SME properties are often purchased. But due to the higher prices and higher interest rates, we are also seeing a growing interest in renting. Renting, where possible, offers an attractive and flexible alternative. With renting, entrepreneurs can better control their costs, without the large initial investment of a purchase. In addition, renting offers the opportunity to respond more quickly to changes in the market and business needs. Flexible leases make it easy to move later or adapt the space to the growth of the company. Depending on the size of the SME property, the rental price is €80 to €100 m²/year.
Conclusion
The rising prices of SME properties in Belgium are a reflection of the growing demand and the limited availability of land. This not only affects existing SMEs, but also starting entrepreneurs who are looking for a place to establish their business.
