Whereas everyone was predicting sluggish figures as a result of the coronavirus crisis, it would seem that real-estate activity was strong in Wallonia and in Flanders during the summer months. A first since 2007 which, according to the Federation of Notaries, is not confirmed in Brussels. But do the professionals on the ground share this view? Not necessarily!
Between figures and reality in Brussels
The Federation of Notaries is in no doubt that the health crisis and the lockdown have harmed the property market. Even more so in Brussels. In fact, although Wallonia and Flanders recorded an upturn in transactions, amounting to +8.5% in June and +13% in August, the capital seems to be lagging behind, with a number of recorded real-estate transactions down 6% compared with August 2019. A slump which, according to the Federation of Notaries, is linked to various factors that are difficult to weight. This time lag and the ‘shift’ in activity towards Wallonia and Flanders could be due to the fact that Brussels may take longer to return to normal and to a slight urban exodus owing to the effects of the lockdown.
A positive opinion for the professionals
For the professionals in the sector, of whom there are many in the capital, the downturn in activity reported by the notaries should be qualified. In fact, several of them agree that only high-end properties with a price tag near or above a million euros are seeing a slight slowdown. Investors remain responsive as regards the more traditional properties, such as houses, apartments and buildings suitable for letting. So several property developers and agents even state that they have recorded a better summer than in 2019, sometimes very substantially exceeding the forecasts. The only cloud on the horizon is the difficulty that investors can experience in obtaining a mortgage from the banks.
Can this increase in investments last?
Some experts agree that rather putting their money in a savings account, which earns virtually no interest and which is subject to inflation, and with stock market investments being sensitive to crises, many savers now prefer to invest in residential property. A trend that may be expected to continue, given the very low interest rates and the increase in Belgian savings during the coronavirus crisis. In fact, even if the real impact of the health crisis were to gradually make itself felt, it is unlikely that investors will no longer be in search of returns. So all the signs seem to indicate that this trend in residential real-estate prices will continue in the short term.