Belgium's Property Market Rebounds with 14.2% Sales Surge in 2025

Belgium's Real Estate Market Achieves 14.2% Sales Growth in 2025

Belgium's real estate market has witnessed a remarkable recovery in 2025, with property sales increasing by 14.2%. This surge marks a significant turnaround following a difficult period in 2023, where a 15% drop in sales was recorded. The resurgence was bolstered by the influx of young buyers aged 18 to 30, particularly in the apartment segment. Investors have also returned to the market, attracted by a strong rental market and gains in the stock market. This revival has been observed across all three Belgian regions and fiscal quarters, indicating a comprehensive recovery. The real estate market's resilience in the face of rising prices provides a strong signal to investors about Belgium's potential as a robust investment destination.

Young Belgians Fuel Property Market Outside Brussels

The upturn in the property market is largely attributed to young buyers under the age of 35, particularly outside of Brussels. These buyers have shown a marked increase in property transactions, spurred by stabilizing interest rates and improved borrowing conditions. Government incentives have also played a crucial role in this trend. According to Brussels Signal, this demographic has been pivotal in driving sales, except in Brussels, where EU officials and expat residents dominate the market due to their tax benefits and higher purchasing power. In regions outside Brussels, the affordability of properties remains a key attraction for young buyers, enhancing regional diversity in home ownership.

Regional Variations in Belgium's Property Market

While the property market across Belgium is showing a strong recovery, regional variations are evident. In Brussels, transactions increased by 7.1% in 2025, according to KBC Brussels. However, Brussels remains the most expensive region, with average house prices at €582,930. In contrast, regions like Flanders and Wallonia are experiencing a more pronounced impact from reduced registration fees, which have dropped from 3% to 2% in Flanders, and from 12.5% to 3% in Wallonia, as detailed by ING Think. These reductions are expected to further stimulate property transactions.

Impact of Housing Supply Dynamics on Market Revival

Despite the strong performance in property sales, Belgium faces challenges concerning housing supply. According to Deloitte's Property Index 2025, Belgium recorded the second-highest growth in housing completions in Europe, with a 10% increase in 2024. However, new project starts declined by 8.4%, raising concerns about future supply constraints. The average asking price for new dwellings rose by 1.3% in 2024, indicating a moderate price increase in a structurally undersupplied market. This imbalance could pose risks to long-term market stability if not addressed.

Commercial Real Estate Trends: A Contrast in Dynamics

The commercial real estate sector in Belgium has also shown contrasting trends. As reported by JLL, industrial real estate is on track for a record year, with €1.6 billion in transactions in the first half of 2025. This contrasts with the retail sector, which is experiencing mixed results; while High Street and shopping centers are thriving, retail warehousing is undergoing recalibration with a 14% decline. The office segment is seeing a shift towards new buildings, reflecting changing workplace preferences post-pandemic.

Future Prospects and Recommendations for Investors

Looking ahead, the Belgian real estate market presents both opportunities and challenges for investors. The recovery in property sales, driven by young buyers and favorable financing conditions, offers promising prospects. However, the potential for supply constraints due to declining new project starts could affect market dynamics. For investors, exploring opportunities outside Brussels may offer better value, particularly in regions benefiting from reduced registration fees. Additionally, staying informed about legislative changes and market trends will be crucial to making informed investment decisions. As Maya Tarek, Senior Analyst at RealEstateAbroad.com, suggests, "Investors should consider diversifying across regions and property types to mitigate risks associated with market fluctuations."