Across Belgium, the rental market is facing a critical shortage of available properties, driven by economic and regulatory challenges. In Brussels and Flanders, a steep drop in new rental contracts is leading to increased competition and, ultimately, higher rents. Real estate professionals across the country are calling for urgent policy changes to address the housing crisis and prevent further deterioration of the rental market.

Brussels: Shrinking Supply, Rising Rents

In Brussels, new rental contracts dropped by 20% in early 2024, even as demand remains high. This shortage is driven by rising interest rates, construction costs, labour shortages, and stricter energy efficiency standards (PEB), all of which have delayed or cancelled many new projects. With 90% of Brussels’ rental market consisting of apartments, rents rose by 2.8% in the first half of 2024 and may reach 6% by the end of the year. Federia, the Federation of French-speaking Real Estate Agents of Belgium, warns that unless policies shift to encourage private investment, the housing shortage will worsen, pushing rents even higher. Federia also stresses that the core issue is not rent prices but the lack of available rental properties.

Flanders: Record Declines and Overwhelming Demand

In Flanders, the rental market has seen a 30% drop in contracts during the first half of 2024, an unprecedented decline according to the CIB rental barometer. The market is overwhelmed, with 40-50 potential renters competing for each property and some listings receiving up to 90 inquiries. Renters have little choice, particularly for properties in the €700-850 price range. Despite high demand, rents are rising only with inflation, with average rents now exceeding €850 per month. The shortage is worsened by higher interest rates, which keep tenants in their current homes, and by investors leaving the market due to renovation costs and fewer building permits.

Wallonia: Slower Rent Growth, Same Challenges

In Wallonia, the increase in rents has been slower than in Brussels. After a 4.3% rise in 2023, rents grew by just 2.52% across all property types in the first half of 2024. However, this slower growth has not reassured real estate agents in the region, where the gap between supply and demand has also widened. Many investors have exited the market, and housing accessibility has fallen by 50% over the past two years.

Need assistance in finding accommodation in Belgium? Reach out to our team at belux@expatmanagementgroup.com