Press release: New-build prices continue to rise in Flanders and slightly decline for Wallonia
Waregem/Ghent, 05/04/2023 - The prices of residential new construction properties in Belgium, including houses and apartments, continue to rise in the first quarter of 2023. However, regional differences are emerging, as revealed by an analysis of the New-Build Barometer, an initiative of neighbourhood developer Matexi and real estate data platform Realo.
The demand for new, energy-efficient homes has been steadily increasing since the energy crisis. The New-Build Barometer monitors the new construction real estate market in Belgium. Every quarter, the New-Build Barometer publishes the (price) developments and trends at the national, regional, and municipal levels.
New construction houses: +7.5% annually, +2.4% in the first quarter
The average price of a newly constructed house in Belgium increased by 7.5% annually (Q1 2023 vs. Q1 2022). Prices increased more in Flanders (+8.3%) than in Wallonia (+2.7%). The stabilisation that appeared to be emerging in the last quarter of 2022 did not continue.
On a quarterly basis, the average price of a newly constructed house in Belgium increased by +2.4%, or almost € 9,000. While prices in Flanders rose by an average of 3.4%, Wallonia saw a slight decrease (-1.2%) for the first time since Covid-19 (Q3 2020). However, due to the limited and currently one-time decrease, it is too early to speak of a trend.
The price of a new-build house in Belgium is now € 380,378, with prices higher in Flanders (€ 404,894) than in Wallonia (€ 329,298). The provinces of Flemish Brabant (€ 448,814) and Antwerp (€ 430,948) are the most expensive provinces. In Hainaut (€ 284,448), buyers will find the lowest prices.
New construction apartments: +4.8% annually, +0.8% in the first quarter
Regarding newly constructed apartments, we see a more moderate price increase annually (Q1 2023 vs. Q1 2022) than with houses, namely +4.8%. While prices in Flanders rose by +5.9%, the increase in Wallonia (+3.1%) and Brussels (+3.4%) was more limited.
On a quarterly basis, the average price increased by +0.8%. As with new construction houses, the New-Build Barometer also shows regional differences here: prices in Flanders rose by +1.9%, compared to a +1.3% increase in Brussels and a -3.3% decrease in Wallonia. Despite this decrease in Wallonia, the prices of newly constructed apartments increased by +3.1% annually.
The price of a new-build apartment in Belgium is now € 285,919, with the price highest in Brussels (€ 356,189), followed by Flanders (€ 303,167) and Wallonia (€ 249,452). Flemish Brabant (€ 328,211) and Antwerp (€ 316,542) are the most expensive provinces. In Liège (€ 250,032) and Hainaut (€ 230,972), buyers will find the lowest prices.
Fabrice Luyckx, data analyst at Realo: "The prices of new-build homes continue to rise while we have been observing a cooling down in the secondary market (existing homes) for some time now. Presumably, the pressure to renovate plays a role in the existing homes market. Renovation costs can lower the asking price. In contrast, new-build homes are already very energy-efficient.
Roel Helgers, Market Economist at Matexi: "These figures confirm for the first time the assertion that the real estate market is increasingly characterised by two speeds. The upward pressure on new-build prices is the result of increasing attention from buyers to the energy efficiency of a home, stricter renovation regulations, rising construction costs, and a decrease in supply in 2022."
About the New-Build Barometer
The New-Build Barometer objectively collects open data from the government, other online sources, and online real estate listings. This results in a substantial and representative sample of the entire Belgian new-build market. The academic and independently validated analysis method allows for more accurate monitoring of actual price trends for new-build houses and apartments, taking into account changes in property characteristics over time.
The New-Build Barometer tracks price trends (excl. VAT) for an average Belgian home, being a semi-detached house of 160m2 with three bedrooms, bathroom and garden. In the apartment segment, this refers to an apartment of 95m2 with two bedrooms and a bathroom.
Read all information from the New Build Barometer on the website.
About Realo
Realo is a Ghent-based scale-up that aims to bring transparency to the European real estate market. Using a powerful and self-developed real estate data platform, the company supports real estate professionals and consumers by providing data-driven insights and leads. Realo gathers local and public real estate data and brings it together in an intuitive platform. The company has the most complete and up-to-date data on real estate in Belgium (since 2014). "Data-as-a-service" solutions provide access to basic information, analyses and historical (price) information on Belgian real estate, making efficient and accurate valuations possible. In addition, the real estate data platform also offers "leads-as-a-service" solutions aimed at generating buyer and seller leads for real estate agents.For more information, please visit: www.realo.be
About Matexi
Since 1945, Matexi has been offering everyone the opportunity to purchase an affordable, sustainable and high-quality home. Under the motto "Welcome to the neighborhood", Matexi wants to contribute to neighborhoods that inspire people to make more out of life together with each project. Matexi has offices in every Belgian province, in the Brussels-Capital Region, in the Grand Duchy of Luxembourg, and in Warsaw and Krakow (Poland). With nearly 400 employees, Matexi is currently developing 478 neighborhoods in 406 cities and municipalities. Since its inception, Matexi has built more than 45,800 homes, roughly equivalent to the number of homes in cities like Kortrijk or Mechelen.As a market leader, Matexi aims to provide adequate answers to developments and challenges in the housing market. With projects such as 't Groen Kwartier (Antwerp, conversion of military hospital), Antwerp Tower (conversion of 26-story office tower), Leopold Views (Evere, conversion of office tower), De Kazerne (Ghent, conversion of military complex into city district), Bétons Lemaire (Ottignies, conversion of industrial site), Quartier Bleu (Hasselt, development of new city district by the water), I-Dyle (Genappe, first 'eco-quarter' in Wallonia) and Kolska od Nowa (Warsaw, development of apartment complex), Matexi takes the lead in large urban developments and conversion with a focus on social inclusion and sustainable building.For more information, please visit www.matexi.be/pers.