The private rental market in Belgium is slowing down due to a shortage of housing supply, according to a study by real estate federations CIB and Federia.
Brussels and its surrounding provinces remain the most expensive areas to rent in the country.
In spring 2024, 20,600 new rental contracts were signed in Flanders, a decrease of more than 35% compared to spring 2023. In Brussels, rental contracts fell by 23%, and Federia noted a similar decline in Wallonia.
“Until 2023, we benefited from a long period of low interest rates,” said CIB spokesperson Kristophe Thijs.
This boom came to an end in 2023, as rising interest rates discouraged investors, and new construction and conversion projects slowed, partly due to the rising costs of materials and labor.
"Brussels is particularly vulnerable due to limited opportunities for expansion"
“The inflow of rental properties is shrinking, which is concerning as the gap between supply and demand for rental housing continues to widen,” Thijs added.
“Brussels is particularly vulnerable because there are limited opportunities to expand supply in an urban setting. Additionally, the biggest challenge for Brussels is making the investment climate more attractive. In recent years, steps have been taken backwards rather than forwards in this area.”
In Wallonia, several real estate sector players have urged the new regional government to address declining housing affordability. They are calling for "concrete, strong, and rapid" measures, such as reducing registration fees, to prevent a looming housing crisis.
Average rents
The federations’ rental barometers also analyzed average rents across the country. Woluwe-Saint-Pierre is the most expensive municipality in Brussels, with an average rent of €1,542 per month. Ixelles and Uccle follow, with averages around €1,350.
Only Jette, Laeken, Anderlecht, and Ganshoren have average rents below €1,000, with Ganshoren being the least expensive, at €923.
"The inflow of supply is shrinking, which is worrying"
In Flanders, Flemish Brabant is the most expensive province to rent in, with an average rent of €1,111.
Among Flemish cities, Leuven is the most expensive and has seen the largest price increase since the last barometer. The average price for an apartment in central Leuven this spring was €1,158. Antwerp remains in second place, with an average rent above €1,000. Mechelen and Ghent are nearing that level and may surpass it by autumn.
In Wallonia, Walloon Brabant is the most expensive province, with an average rent of €1,094, compared to rents ranging from €762 to €800 in the region’s other provinces.