Annual house price to rent ratio in Belgium 1977-2020
In 2020, the annual house price to rent ratio reached an index value of 110.8. As such, it was below the OECD average, which reached 115.1 at that point in time.
The source mentions that values over 100 indicate that the present price-rent ratio, or price-income ratio, is above its long-run norms. This provides an indication of possible housing market pressures. This ratio, based on the nominal purchase price of a house divided by the annual rent of a similar place, is normally used to show the undervaluation or overvaluation of real estate prices and aims to give an indication whether or not it is cheaper to buy or to rent residential property.
The source mentions that values over 100 indicate that the present price-rent ratio, or price-income ratio, is above its long-run norms. This provides an indication of possible housing market pressures. This ratio, based on the nominal purchase price of a house divided by the annual rent of a similar place, is normally used to show the undervaluation or overvaluation of real estate prices and aims to give an indication whether or not it is cheaper to buy or to rent residential property.
