Houses in Belgium least affordable in Europe

Nowhere in the eurozone are houses more expensive than in Belgium, taking account of the relationship between house prices and salaries, according to a new report Standard & Poor’s (S&P). Hopeful homeowners have no changes in the market to look forward to in the near future, the report says. S&P forecasts growth of 1.5% this year and next year.

Part of the reason for continued high prices in Belgium, unlike other parts of Europe, which have experienced a drop in prices, is low interest rates together with a lack of surplus in the market. In some parts of the country, most notably the Brussels-Capital Region, there is a shortage of available houses.

The number of transactions decreased last year, despite a sudden upturn in the third quarter; S&P estimates that trend could continue as first-time buyers find themselves unable to pay rising prices, which would put the brakes on sales throughout the market.

Meanwhile, research just released from the University of Leuven shows that almost four out of 10 buyers in Flanders stay within the same postcode when buying a house or apartment. Slightly more than that – 47% – stay within the same municipality when moving house.