Investing in real estate?

With the ambitious and hopeful title: Investing in real estate? ‘Demand will continue to grow in the coming years’, back in October, De Tijd quoted the chief economist at ING Mr Peter Vanden Houte.

It was pleasant to finally read positive signals from the banking sector as well. More so because it was based on correct and nuanced analysis. Today, we at Van Wellen Group also note in practice that buyers, but also investors, are finding their way back to the right product in the right place. The launch of two innovative projects in Hoogstraten and Brasschaat was a very concrete expression of this renewed confidence in real estate investments.

The right time to buy real estate determines the return, according to Peter Vanden Houte.

1. Increasing demand for property

Demand for real estate will continue to rise in the coming years. This growth is mainly driven by demographic trends.

2. Rising demand for sustainable housing

sustainability is a second key trend and European regulations continue to significantly boost demand for energy-efficient homes.

3. Influence of interest rates on the housing market

Interest rates are also a crucial factor for the housing market. Falling interest rates make property values rise. Of course, this also works in reverse.

4. Little chance of interest rate stimulus

Although the European Central Bank (ECB) is likely to cut short-term interest rates further, long-term interest rates are already currently significantly lower than short-term rates.

5. Stable Belgian property market

Despite price increases, the Belgian property market remains the most stable among OECD countries. Automatic wage indexation makes households less sensitive to inflation shocks.

6. Location remains crucial

Location remains a determining factor in the property market. ‘Even as working from home has become more established since the pandemic, demand for housing in urban centres continues to rise, driving up prices as distance from the city centre decreases.’