Construction Land in Belgium: A Growing Market Trend

Belgium, a country known for its stunning architecture and rich history, is experiencing a notable surge in the demand for construction land.

Belgium, a country known for its stunning architecture and rich history, is experiencing a notable surge in the demand for construction land. Over the past six months, the sales of construction land in Belgium have witnessed a significant increase, redefining the landscape of the real estate industry. With a decline of 10% at the national level and an even more substantial decrease of 20.5% in the Wallonia region (French-speaking region), this growing trend has captured the attention of aspiring homeowners and investors alike.

The First Half of 2023: A Turning Point in the Land Market

The first six months of 2023 have seen a sharp rise in the number of notary offices reporting a decline in the sales of construction land across Belgium. Nationally, there has been a 10% decrease, while the Wallonia region has witnessed a staggering 20.5% decline. This downturn, however, does not reflect the real value of the land but rather the scarcity of available building plots in Wallonia Brabant, the province commanding the highest prices in the region.

Dreams of a Four-Fronted House: An Inaccessible Illusion?

For the majority of Belgians, the dream of owning a four-fronted house is becoming increasingly elusive. In Wallonia Brabant, individuals interested in purchasing construction land can expect to spend an average of 128 euros ($139) per square meter in 2023. Although this figure remains relatively stable compared to 2022, it still represents a significant increase from the pre-pandemic prices of below 100 euros/m2. According to Renaud Grégoire, a spokesperson for Notaire.be, the decrease in sales is due to the scarcity of available building land in Wallonia Brabant.

The Shift to Neighboring Provinces: Exploring Alternatives

The inability to find affordable land in Wallonia Brabant has led potential buyers to explore alternatives in neighboring provinces, particularly Hainaut. As land prices surge along the French border in Hainaut, the phenomenon of French workers settling in Belgium for work has gained popularity in the Liège province. In addition, land prices are also rising on the Belgian-Dutch border, offering enticing opportunities for prospective buyers.

Contrasting Flanders: A Different Reality

In stark contrast to Wallonia Brabant and its neighboring provinces, the Flanders region, predominantly Dutch-speaking, imposes significantly higher prices for land. Buyers seeking to acquire land in Flanders must be prepared to pay three times the amount. This increase is primarily attributed to Flanders' policy aimed at reducing the construction of new buildings. These differing approaches to land development and construction further contribute to the clear divide between the regions.

The Future Outlook: Declining Sales and Challenges Ahead

Despite the surging demand for construction land across Belgium, sales are expected to continue their downward trajectory in the future. The scarcity of available land, coupled with the increasing costs of land and construction, pose significant challenges for prospective buyers. It is vital for buyers to consider not only the cost of the land but also the expenses associated with constructing their homes. In fact, the cost of land typically accounts for only a quarter of the overall budget, emphasizing the financial burden faced by aspiring homeowners and investors.

Navigating the Changing Landscape

As the Belgian real estate market evolves, it is crucial for buyers, developers, and investors to navigate the changing landscape effectively. The increasing prices of construction land, coupled with the scarcity of available plots, require strategic planning and consideration. Exploring alternatives in neighboring provinces or assessing opportunities in different regions can prove beneficial in pursuit of the dream home or investment property. Understanding the varying policies and market conditions across Belgium is essential for making informed decisions in this ever-changing industry.