Prices of ‘regular’ houses in Belgium rose by 2.79%, to €184,147, during the year to end-Q2 2011.
The trend seems now to be down. In the second quarter of 2011, prices of regular houses in Belgium dropped by 0.8% q-o-q, according to Statistics Belgium (StatBel).
Belgium’s house price boom from 2000 to H1 2008 was driven by low interest rates and increased competition between banks; and strong economic and wage growth
Total transactions for ‘regular’ houses fell by 2.4% to 15,955 units from a year earlier to Q2 2011, with apartment transactions down 9%. The property market has been adversely affected by the country’s political troubles. Since the parliamentary election in 2010, Belgium has been in political deadlock.
Belgium’s real GDP grew by 2.5% in Q2 2011, after 3% growth in Q1, according to the National Accounts Institute. In 2010, the economy expanded by 2.1%, according to the IMF.
- In Brussels, prices of regular houses increased by 1.2% to €338,645.
- In the Flemish region, regular house prices rose 3.71% to €197,415. Flemish Brabant had the most expensive houses, with an average price of €232,192. The cheapest, on the other hand, were in the province of Limburg with an average house price of €174,621.
The trend seems now to be down. In the second quarter of 2011, prices of regular houses in Belgium dropped by 0.8% q-o-q, according to Statistics Belgium (StatBel).
Belgium’s house price boom from 2000 to H1 2008 was driven by low interest rates and increased competition between banks; and strong economic and wage growthTotal transactions for ‘regular’ houses fell by 2.4% to 15,955 units from a year earlier to Q2 2011, with apartment transactions down 9%. The property market has been adversely affected by the country’s political troubles. Since the parliamentary election in 2010, Belgium has been in political deadlock.
Belgium’s real GDP grew by 2.5% in Q2 2011, after 3% growth in Q1, according to the National Accounts Institute. In 2010, the economy expanded by 2.1%, according to the IMF.
Analysis of Belgium Residential Property Market »
RENTAL YIELDS
Last Updated: May 02, 2011
Small apartments in Brussels can have very acceptable gross rental yields of around 6.7% on 60 square metre (sq. m.) apartments. Larger apartments naturally have lower yields
This is largely due to higher prices. In addition, it is our impression that rents have been almost completely static over the past 5 years.
This is largely due to higher prices. In addition, it is our impression that rents have been almost completely static over the past 5 years.
TAXES AND COSTS
Last Updated: Jul 05, 2011
Rental Income: Personal income tax range from 25% to 50%, depending on the taxable net income. The taxable net income is the cadastral value, increased by 40%, minus deductible expenses. As a result, the effective rental income tax is a bit lower than the headline rate, ranging from 9.22% to 23.07%.
Capital Gains: Capital gains tax of 16.5% is payable on gains on developed property held for less than five years. After a holding period of five years, no Capital Gains Tax is payable.
Inheritance: Inheritance tax rates in Belgium are progressive and vary according to the degree of kinship, region where the inheritance is opened, and the share inherited by each of the heirs.
Residents: Residents are taxed on worldwide income at progressive rates, from 25% to 50%.
Capital Gains: Capital gains tax of 16.5% is payable on gains on developed property held for less than five years. After a holding period of five years, no Capital Gains Tax is payable.
Inheritance: Inheritance tax rates in Belgium are progressive and vary according to the degree of kinship, region where the inheritance is opened, and the share inherited by each of the heirs.
Residents: Residents are taxed on worldwide income at progressive rates, from 25% to 50%.
BUYING GUIDE
Last Updated: Mar 06, 2007
Closing costs are high in Belgium, between 13.9% and 22.1% of property value. The bulk of the cost is accounted for by transfer duties, at 12.5% or 10%, depending on the property’s location. Roundtrip costs for new properties are much higher because of the 21% VAT.
LANDLORD AND TENANT
Last Updated: May 30, 2006
Belgian law is pro-tenant.
Rents: Rents can be freely negotiated but rent increases above the inflation rate cannot be written into the contract. If there is a written contract, the rent will be automatically adapted once a year in accordance with the cost of living. Deposit payments must not exceed three month’s rent.
Tenant Security: Belgium’s landlord and tenant law is restrictive as regards the length of rental contracts. The main options for the duration of a lease are: a contract of 9 years and, alternatively, a contract for less than three years.
Rents: Rents can be freely negotiated but rent increases above the inflation rate cannot be written into the contract. If there is a written contract, the rent will be automatically adapted once a year in accordance with the cost of living. Deposit payments must not exceed three month’s rent.
Tenant Security: Belgium’s landlord and tenant law is restrictive as regards the length of rental contracts. The main options for the duration of a lease are: a contract of 9 years and, alternatively, a contract for less than three years.
ECONOMIC GROWTH
Last Updated: Nov 15, 2011
Healthy growth despite Eurozone debt crisis
Despite the financial crisis that hit the Euro zone, Belgium outperformed most countries in the region. Belgium’s real GDP grew by 2.5% in Q2 2011, after 3% growth in Q1, according to the National Accounts Institute.Unemployment is projected to fall to 7.9% in 2011, from 8.4% in 2010. Belgian inflation stood at 3.6% in August 2011, up from 2.3% in 2010, according to Statistics Belgium (StatBel).
The austerity measures implemented in 2010 are cutting the deficit, which is expected to fall to 3.5% of GDP in 2011, a significant improvement from last year’s 4.1% of GDP.
Belgium had a GDP per capita of US$42,845 in 2010 and a population of 10.4 million. Its capital, Brussels, is home to several international organizations, including the headquarters of the European Union and the North Atlantic Treaty Organization.
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