Residential real estate price forecast change in Belgium 2020-2022

In 2020, housing prices in Belgium increased. According to the forecast, 2021 will follow with a slight decrease of 1.5 due to the economic downturn caused by the coronavirus crisis. Consumers signal much uncertainty on, for example, unemployment in Belgium, which might hamper the housing market in 2021.

In sync: Belgium’s housing prices until COVID-19

For years, house prices in Belgium followed a similar growth pattern to the country’s economy. Residential property prices grew when Belgium's economy performed well but stagnated when the economy slowed down. Belgium's house price index grew by more than 3.5 percent year-on-year (or 2.7 percent when adjusted for inflation) in early 2020, a growth rate that was lower than in previous years.

The Belgian economy faces an uncertain future

Belgium’s real estate market is closely connected to the economic performance of the country. According to a forecast from the European Commission in July 2020, the Belgian economy was predicted to decline by 8.75 percent in 2020, a figure that was slightly higher than real GDP losses predicted for other European countries. This prediction reflected supply chain disruptions impacting domestic demand, as well as (a lack of) international trade impacting Belgian growth.