The rising prices of new-build apartments in Belgium
Market Snapshot
For several years now, the Belgian market for new-build apartments has seen a significant price increase. This trend is mainly influenced by supply constraints, escalating construction costs, and continued demand in urban centers. Due to strict requirements in terms of quality and sustainability, new developments are becoming increasingly popular, while availability is relatively limited.
Current prices and regional differences
The average prices for new-build apartments in Belgium show large regional differences. In Brussels, the average price is 404,119 euros for a 95 m² apartment with two bedrooms and a bathroom. Flanders follows with an average price of 328,481 euros, while Wallonia offers the most affordable option with 278,766 euros. This price dynamic underlines the high demand and limited space in Brussels, but certainly also in some Flemish cities. Wallonia, but also the Walloon cities, remain remarkably cheap.
Price trends
The price trajectory for new-build apartments points to a consistent upward movement, with quarterly growth of 0.88% and an annual increase of 1.63%. Since the beginning of 2020, prices have increased by 23.9%, raising concerns about the affordability gap, particularly for first-time buyers and young families. There are therefore more and more tenants.
Prices for new apartments in Brussels have now exceeded the threshold of €3,500 per square metre everywhere. The most prestigious residential areas, in the centre and south-east of the Brussels-Capital Region, are subject to new construction prices that exceed €7,000 per square metre. Meanwhile, cities such as Ghent, Antwerp, Leuven and Mechelen are seeing new-build prices vary between €4,500 and €6,000 per square metre. These prices are exclusive of VAT.
"The sharp rise in prices in Brussels – reaching up to €7,000 per m² for properties located in prime areas – is now dampening investor interest. They are becoming more cautious, on the one hand because of the fall in rental yields, and on the other hand because of the recent measures to limit rents imposed in the Brussels region. ", according to Sébastien Verstraete, Senior Director and Head of Residential Investment Properties at CBRE Belgium. "Since the beginning of the year, we have seen more and more development projects being sold off-plan via the Breyne law. Nevertheless, if we compare the number of sales, we are no longer in a 50/50 split between buyers, investors and occupiers. ", explains Sébastien Verstraete. "While new projects still appeal to prospective buyers looking for a home with their own occupancy, investors tend to turn away from these products, which are considered less financially attractive in the current context. This imbalance has a direct impact on market dynamics. Developers must now adapt their marketing strategy: more focused on comfort, energy performance and flexibility of use, to convince a more demanding public of buyers-occupiers. In the medium term, this could also influence the very design of projects, with an offer that is more oriented towards quality of life and less towards pure rental income. »
The role of VAT in new construction purchases
Value added tax (VAT) plays a crucial role in the process of purchasing a new-build apartment in Belgium. The standard sales tax rate for residential properties is 21%, although reduced rates may apply under certain conditions.
VAT on demolition and reconstruction for projects was permanently reduced to 6%, as a result of the recent Easter agreement of the federal government. From 1 July 2025, you will pay 6% VAT on new build apartments on demolition and reconstruction sites. There is currently still a temporary transitional measure, which will become permanent from July.
Outlook for 2025 and beyond
Looking ahead, interest rates are expected to stabilize and even fall, potentially encouraging more buyers to re-enter the market. Sustainability will continue to be a focus, with an increasing demand for energy-efficient buildings that drive innovation in design and materials. However, growing concerns about affordability may lead to government intervention or incentives to help start-ups. As the market evolves, stakeholders will need to adapt to these changing dynamics to meet the needs of a diverse buyer demographic in Belgium.
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