A recent study by BNP Paribas Fortis, published on Wednesday, reveals a significant rise in second property ownership among Belgians, with 1.15 million individuals now owning a second property.
This marks a notable increase of 7% since 2022 and 16% since 2019. The data highlights a resurgence in the real estate market following a post-Covid lull, where mortgage applications fell by 36% in 2022.
The current trend shows Belgians are once again turning to the property market, with a particular preference for domestic properties over international ones.
The study notes that a striking 93% of second homes purchased by Belgians in 2023 were located within the country.
This inclination towards local investments is attributed to the ease of property management and a higher likelihood of obtaining mortgages from familiar banks. Among these properties, two-thirds were homes, while the remaining third were apartments.
Interestingly, the report highlights that two-thirds of these properties were bought as investments, primarily intended for rental purposes. This marks a significant rise since 2019, when only 56% of properties were intended as rentals.
The proportion of buy-to-rent properties is even higher in urban areas like Brussels, where 77% of second properties are intended for renting. University towns such as Liège, Ghent, and Leuven also exhibit a high percentage of rental properties.
The study identifies key hotspots for second property purchases in 2023, including the Ardennes region (notably Spa and Verviers) and the Belgian coast (Ostend and Knokke). Ostend, in particular, remains a popular destination for second home buyers, owing to its scenic beauty and recreational opportunities.
While the majority of Belgians prefer to invest in properties within the country, those buying abroad primarily settle in Spain (41%) and France (37%), with a smaller percentage (8%) opting for Italy.
Spain’s appeal lies in its lower property prices and ease of access, while France offers various advantages at the time of purchase or property transfer, such as lower notary fees and taxes. However, only 14% of properties purchased abroad are intended for rental purposes.
The trend of second property ownership is not limited to older generations. The study reveals that one in seven buyers in 2023 were under the age of 40.
A significant portion of the younger cohort is investing in properties abroad, with 30% of Belgian buyers in Spain being under 40. BNP Paribas Fortis attributes this trend to the rise of teleworking, which allows for greater flexibility in property location.
Interestingly, the report notes that concerns about climate change do not significantly impact Belgians’ property purchase decisions.
Despite the heightened risk of droughts, heatwaves, coastal erosion, forest fires, and floods in countries like Spain, France, Italy, and Greece, these destinations remain popular among Belgian buyers. The bank suggests that climate concerns are not yet a critical factor in property selection criteria.
In summary, the BNP Paribas Fortis study underscores a growing trend among Belgians to invest in second properties, driven by both leisure and investment motives. With a marked preference for domestic properties and a rising interest among younger buyers, the Belgian real estate market appears poised for continued growth.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
