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Houses in Belgium least affordable in Europe

10:47 23/01/2014

Nowhere in the eurozone are houses more expensive than in Belgium, taking account of the relationship between house prices and salaries, according to a new report Standard & Poor’s (S&P). Hopeful homeowners have no changes in the market to look forward to in the near future, the report says. S&P forecasts growth of 1.5% this year and next year.

Part of the reason for continued high prices in Belgium, unlike other parts of Europe, which have experienced a drop in prices, is low interest rates together with a lack of surplus in the market. In some parts of the country, most notably the Brussels-Capital Region, there is a shortage of available houses.

The number of transactions decreased last year, despite a sudden upturn in the third quarter; S&P estimates that trend could continue as first-time buyers find themselves unable to pay rising prices, which would put the brakes on sales throughout the market.

Meanwhile, research just released from the University of Leuven shows that almost four out of 10 buyers in Flanders stay within the same postcode when buying a house or apartment. Slightly more than that – 47% – stay within the same municipality when moving house. 

Written by Alan Hope

Comments

Mikek1300gt

I have said it for several years. You only have to do a simple calculation on immoweb, have some knowledge of what real tax paying people in this country take home, and it makes a mockery of claims that Belgian property is good value unless you have just come in from a wealthy area of London or Paris and are not living on a Belgian net income.

The old money in Belgium keeps property prices high, tax free income from the rents. If you earn a local salary and pay local taxes, there is nothing affordable about the 420,000 (plus about 45,000 in taxes plus a disgusting 3000 Notaris bill) to buy a decent semi detached house in an area between Overijse and Leuven.

The mortgage payments are going to require 10,000 Euro per month gross salaries.

Jan 23, 2014 22:15