House prices in Belgium increased slightly in 2024, by only 0.5%. However, analysts expect them to grow by 3% in 2025 and by 3.8% in 2026. This will be possible thanks to stable mortgage rates, wage indexation, lower utility bills, some changes in legislation and a general lack of supply on the market.
In recent years, the increase in interest rates by the European Central Bank has led to a sharp increase in long-term mortgage rates, which has negatively affected the creditworthiness of buyers and made buying a home a difficult task.However, in June 2024, the ECB began lowering deposit rates again, which led to lower mortgage rates.This has increased housing affordability. The number of transactions has increased significantly.
It is expected that as interest rates stabilize, many buyers will abandon the wait-and-see position, realizing that rates will not return to the level of 2022.Consequently, home sales will intensify in 2025, which will contribute to price growth.
Prices for energy-efficient homes are growing faster than energy-intensive ones, and this trend is expected to continue.
Source: ING
