Investing in Real Estate in Belgium: Understanding the Market, Taxation, and the New Rules of the Game

Published on January 15, 2026 and written by Cyril Jarnias

Investing in real estate in Belgium has never been so tempting… nor so technical. Between continuously rising prices, tax reform, tightening energy standards, and public subsidies that vary from region to region, the landscape has profoundly changed. Yet, for a well-informed buyer, opportunities remain plentiful, whether one is aiming for a primary residence, classic rental property, commercial space, offices, or even tourist rentals.

A Market in Full Recovery, but Increasingly Selective

After a slight slowdown in 2023, the Belgian real estate market has picked up again. In the first nine months of 2025, sales increased by about 15% nationally compared to the same period in 2024. At the same time, prices continue to rise, but in a differentiated manner.

Rising Prices, Especially for Houses

Statbel reports for 2025 a marked increase in house prices, especially in Wallonia, while the apartment segment is progressing more moderately.

Indicator (First 9 months 2025)	Belgium	Wallonia	Flanders	Brussels-Capital
Average house price	€346,218	€269,551 (+12.9%)	€376,462 (+2.4%)	€577,108 (+1.2%)
Average apartment price	€275,862	€209,952 (+5.8%)	≈ €281,500 (slight decline)	€297,411 (+2.3%)
Sales evolution (vs. 2024)	+15%	+17.2%	+15%	+8.6%

The dynamic is particularly spectacular in Wallonia, where the average house price jumped by nearly 18% in the first quarter of 2025. In Flanders, the increase is more contained but steady, while in Brussels prices remain at their peak, especially for single-family homes.

Mortgage Rates Stabilized Around 3%

On the financing side, the credit market has moved a lot since 2022 but is tending to stabilize. For 2025, experts anticipate rates averaging between 2.5% and 3.5%, depending on the borrower’s profile and term.

Average Fixed Rates (August 2025)	20 years	25 years	30 years
Personal contribution ≤ 10%	3.40%	3.40%	3.71%

With a good file (stable income, down payment > 20%, low debt), it is still possible to negotiate rates close to 3% over 20-25 years, or even lower for the best profiles. The cumulative effect of lower rates and reduced registration duties in some regions has clearly revived demand in 2025.

A Persistent Imbalance Between Supply and Demand

Since 2023, the number of new homes built has no longer kept pace with household growth. The factors driving prices upward are known: population growth, urbanization, increased rental demand (35% of Belgians were tenants in 2021), decline in new construction due to material costs and administrative constraints, and pressure from energy standards on the existing stock.

Where to Invest in Belgium? Comparison of Regions and Returns

The major specificity of the Belgian market is the strong segmentation between Flanders, Wallonia, and the Brussels-Capital Region, with significant disparities in prices… and yields.

Median Prices by Province: A Very Contrasted Landscape

For houses, the podium of the most expensive provinces remains dominated by Walloon Brabant, Brussels, and Flemish Brabant; Hainaut and Liège bring up the rear.

Province (houses)	Median Price
Walloon Brabant	€420,000
Brussels-Capital	€385,000
Flemish Brabant	€365,000
West Flanders	€315,000
Antwerp (province)	€310,000
East Flanders	€295,000
Luxembourg	€260,000
Namur	€260,000
Limburg	€250,000
Liège	€220,000
Hainaut	€195,000

For apartments, the hierarchy changes slightly, but Brussels remains at the top in terms of price.

Province (apartments)	Median Price
Brussels-Capital	€265,000
Walloon Brabant	€280,000
Antwerp (province)	€250,000
Flemish Brabant	€245,000
West Flanders	€235,000
East Flanders	€220,000
Luxembourg	€200,000
Namur	€195,000
Limburg	€195,000
Liège	€165,000
Hainaut	€145,000

Gross and Net Yields: Brussels vs. Flanders vs. Wallonia

For rental properties, the gross yield is calculated by dividing the annual rent by the purchase price. On average:

Region	Average Price/m² (approx.)	Average Monthly Rent	Gross Yield	Estimated Net Yield
Brussels	≈ €3,400/m²	≈ €1,000	~ 4.5%	≈ 3.8%
Flanders	≈ €2,800/m²	≈ €850	~ 5.1%	≈ 4.3%
Wallonia	≈ €2,200/m²	≈ €700	~ 5.8%	≈ 4.8%

Brussels offers extremely solid rental demand and unmatched market depth, but high prices compress yields. Flanders and Wallonia show more attractive yields, particularly in some secondary cities.

Focus on Key Cities

Recent data give a fairly accurate idea of the price/rent ratio by city and property size.

City (apartments)	Type	Average Price	Average Rent	Approx. Gross Yield
Brussels (city)	1 bed	€243,000	€1,165	~ 5.75%
Brussels (Region, outside city)	2 bed	€307,000	€1,590	~ 6.21%
Antwerp	2 bed	€298,000	€1,155	~ 4.65%
Ghent	1 bed	€225,000	€845	~ 4.51%
Liège	2 bed	€231,000	€925	~ 4.81%
Namur	2 bed	€251,000	€870	~ 4.16%
Charleroi	2 bed	€156,000	€755	~ 5.81%

In practice, investors in Charleroi describe typical cases of two-bedroom apartments bought for around €110,000 and rented for €650–€700/month, meaning gross yields easily exceeding 7–8%. Conversely, in popular cities like Bruges or Ghent, yields are rather around 3.5–4.5%, but with strong long-term appreciation potential.

Residential, Commercial, Offices: Which Type of Property for Which Investor Profile?

Investing in real estate in Belgium is not just about buying an apartment in the city. The market is segmented into several major families, with very different risk and return profiles.

Classic Residential Real Estate: The Market’s Foundation

The apartment for residential use remains the most common investment vehicle. Average prices, rents, and yields in 2025 are around the following levels:

Property Type	Average Price	Average Monthly Rent	Average Gross Yield
Apartment	€250,000	€950	~ 4.6%
Single-family house	€350,000	€1,200	~ 4.1%

Apartments dominate the rental supply in urban centers and tend to generate a slightly higher gross yield than houses. The latter, more expensive to buy, sometimes suffer from an unfavorable price/rent ratio, except in the periphery or in highly sought-after family segments.

Co-Living, Student Housing, Furnished and Seasonal Rentals: Boosting Yield… at the Cost of Complexity

Within the residential sector, certain positions can significantly increase yield:

In all these niches, the trade-off is between yield and management time (or the cost of a professional manager).

Retail and Offices: Higher Yields, but Riskier

The average gross profitability of commercial real estate is significantly higher than residential:

Commercial Segment	Average Gross Yield
Retail / Shops	6–8% (or more)
Offices / Tertiary Buildings	5–7%

The advantages are clear: longer leases (often 6-9 years), more favorable cost allocation for the landlord (many expenses borne by the tenant), interior maintenance handled by the occupant, rents paid by generally solvent companies.

Experienced office investors often reason in terms of an “exit scenario”: what is the value if the building were vacant, and what is its value in case of conversion to housing or mixed-use (housing, services, amenities)?

Coworking and Flex-Office: A New Reality for Offices

In Belgium, coworking already accounts for over 20% of office leases, with projections around 30% by 2030. This model, driven by companies’ need for flexibility and the generalization of hybrid work, is transforming usage.

For an investor, this means: the need to make informed decisions and to well understand the risks associated with each investment.

– A declining demand for large monofunctional floorplates, especially in the periphery and in energy-inefficient buildings.

– A value premium for flexible spaces, well-located (city center, transport hubs), possibly integrated into mixed-use projects (housing/offices/services).

– The possibility to invest indirectly via specialized operators who “upcycle” vacant buildings into flexible spaces for SMEs and freelancers.

Three Regions, Three Tax Systems: Registration Duties, Subsidies, and Rental Taxation

Investing in real estate in Belgium requires mastering a regional tax landscape that varies greatly from one territory to another, especially for purchase (registration duties) and, to a lesser extent, for operation (property tax, subsidies, rent control…).

Registration Duties: The Major 2025 Reform

Registration duties – the tax paid when buying an existing property – have undergone major reforms.

Wallonia: 3% for One’s Own and Only Home

Since January 1, 2025, Wallonia applies a uniform duty of 3% for the purchase of a property intended to become the buyer’s “own and only home.” This rate replaces the old system of exemption for first-time buyers and the “Housing Check” (tax advantage linked to the mortgage).

Main conditions:

– the property must become the buyer’s primary residence;

– the buyer cannot own another dwelling (or must sell it within a set period);

– occupation as a primary residence must last at least three years.

Consequence for a €200,000 purchase:

Situation in Wallonia	Rate	Duty Amount
Own and only home	3%	€6,000
Rental investment / 2nd home	12.5%	€25,000

Flanders: 2% for Primary Residence, 12% for Investment

In Flanders, registration duties on a primary residence have gradually decreased from 10% to 3%, then to 2% for recent acquisitions. For other acquisitions (investment, second home), the rate is 12%.

The 1% regime that rewarded major energy renovations has been abolished. Therefore, only the 2% for primary residence and 12% for the rest remain.

For a property of €300,000:

Situation in Flanders	Rate	Duty Amount
Primary residence (buyer meets conditions)	2%	€6,000
Rental investment	12%	€36,000

Brussels-Capital: 12.5% and a Powerful Exemption

In Brussels, the base rate remains set at 12.5%, but the Region offers a very substantial exemption for the acquisition of a first primary residence.

Principle: the first €200,000 of the price are exempt from registration duties, up to a total price of €600,000. The potential saving reaches €25,000 (€200,000 × 12.5%).

Conditions:

– not own any other residential property at the time of purchase;

– purchase price ≤ €600,000;

– establish one’s primary residence in the property within three years and maintain it for at least five years.

Example for a €350,000 apartment:

Situation in Brussels (€350,000 purchase)	Taxable Base	Rate	Duties Due
Without exemption	€350,000	12.5%	€43,750
With €200,000 exemption	€150,000	12.5%	€18,750

For an investor who does not occupy the property, the exemption does not apply: they will pay 12.5% on the entirety, i.e., €43,750 in the example.

Other Acquisition Costs: Notary, Credit, VAT

Beyond registration duties or VAT (21% on new builds), acquisition comes with non-negligible costs:

In total, for a classic purchase of an existing property, one should generally budget:

– 10–15% of the price in Wallonia and Brussels;

– a bit less in Flanders (where the duty rate is lower for primary residence).

For a new build subject to VAT, the latter replaces duties on the “construction” part, but duties remain due on the land value.

Taxation During Ownership: Property Tax and Rental Income

The property tax is an annual regional tax, calculated on the indexed cadastral income. The base rate varies:

– 1.25% in Wallonia and Brussels (to which provincial and municipal surcharges are added);

– 3.97% in Flanders (rate encompassing region, province, and municipality).

The concrete amount therefore depends as much on the municipality as on the region.

Regarding taxes on rental income, the basic regime, for a strictly private-use rental, remains relatively favorable: it is not the actual rent that is taxed, but the indexed cadastral income, multiplied by a coefficient (1.4). For a rental to a company or for professional use, the gross rent (after actual or standard costs) serves as the base.

Furnished rentals have specific treatment: a portion of the rent is deemed to remunerate the furniture (movable income, taxed separately, with an exemption).

In parallel, an important reform is underway: the phasing out of the deductibility of mortgage interest for investment properties (excluding primary residence) starting in 2025 (tax year 2026), including for existing loans. For private investors, tax deduction margins are narrowing, which argues more for long-term strategies and very careful selection of properties.

Public Subsidies and Social Loans: An Important Lever for First-Time Buyers

If one is aiming for their primary residence, regional subsidies can weigh heavily in the financing plan.

Brussels: Exemption, Energy Bonus, and Housing Fund

In addition to the €200,000 exemption on registration duties, the Brussels Region strongly encourages energy renovation.

A mechanism provides for an additional exemption of €25,000 of taxable base per energy class jump, provided the EPC is improved by at least two classes within five years of purchase. In other words, a buyer who upgrades a property from class F to C can benefit from several additional exemption tiers, under conditions that must be carefully met.

Wallonia: Acquisition and Renovation Premiums

In Wallonia, the “Acquisition Premium” (about €745) targets first-time buyers purchasing a home from a public body (social housing company, Region, SNCB, etc.). The amount, relatively modest, is directly deducted from the sale price at the signing of the deed, subject to income ceilings and occupancy conditions (primary residence for 10 years, possible checks).

Old measures like the “Housing Check” – a tax reduction linked to the mortgage – are being phased out for loans taken out from 2025 onward.

Flanders: Reduced Rates on Purchase, Renovation Obligation

Flanders has chosen to prioritize purchase taxation (2% for primary residence, 12% for other acquisitions) and to impose stricter energy renovation obligations than other regions.

Since 2023, any buyer of a home labeled E or F must renovate it to reach at least class D within six years. This obligation is already influencing prices: E-F homes sell on average for less, while A-B-C properties are appreciating more.

Energy Standards: A Criterion Now Central for Every Investor

Energy, once a secondary criterion, has become decisive in property valuation and investment strategy.

Growing Weight of EPC on Prices

Analyses clearly show that since 2023, prices for class D homes are stagnating, those for C are rising, and A/B are soaring. Conversely, E and F labels are depreciating, notably in anticipation of future rental bans, indexation restrictions, or mandatory works.

In Flanders, the obligation to move from E/F to D within six years has already created a price differential between these classes. In Brussels and Wallonia, similar trajectories are emerging: in Brussels, authorities aim for a residential stock at least in C+ by 2050; in Wallonia, the long-term strategy sets an average EPC A target for 2050.

Belgian Regions

A Source of Opportunities… for Patient Investors

For an investor, this energy transition represents both a cost and an opportunity. Studies estimate that targeted works (roof insulation, boiler replacement, efficient glazing) can gain one to two EPC classes for a budget of €5,000 to €15,000 with annual bill savings of €1,500 to €2,500 and resale value appreciation potentially reaching 10–20% for a jump from E to C.

The key is to avoid “lock-in effect”: multiplying small, uncoordinated works that will never achieve long-term objectives. Public strategies are indeed moving towards structured “renovation pathways” (building passports, audits, support).

Office Market, Teleworking, and Conversions: Risks and New Niches

Investing in real estate in Belgium is not just about residential. The tertiary market, especially in Brussels, is undergoing major changes.

Teleworking: Fewer Square Meters, but Better Located

Since the health crisis, teleworking has become firmly entrenched. In Brussels, over 40% of active workers use it, especially in large organizations (European institutions, banks, administrations, major services). For offices, this translates into:

Estimates suggest up to 100,000 m² of office space could “disappear” each year from the Brussels market, either through prolonged vacancy or via conversion to housing or mixed-use projects.

Vacancy, Premium for “Grade A” Buildings, and Conversions

Recent figures show a striking contrast: average vacancy in Brussels is around 8%, but nearly 75% of new leases concern so-called “Grade A” buildings (modern, efficient, well-located). Prime rents remain at high levels (about €400/m²/year in the capital), a sign of robust demand for high-end space.

For an investor, this opens two paths:

– target well-located but energy-inefficient office buildings, where an upcycling strategy (major renovation, segmentation into smaller units, integration of services) can recreate value;

– or, in partnership with specialized operators, aim for conversion operations to residential, while mastering urban planning risks.

Tourist Rentals and Airbnb: A Profitable Activity, but Heavily Regulated

Short-term rentals via platforms like Airbnb have disrupted the market, notably in Brussels and some tourist areas in Wallonia. However, the era of the unregulated “gold rush” is over.

Brussels: The Strictest Regime in the Country

In the Brussels-Capital Region, tourist rentals are heavily regulated:

– obligation for prior declaration and registration with Brussels Economy and Employment;

– complete file to be provided (identity, insurance, fire safety certificate, urban planning compliance, condominium agreement if necessary, etc.);

– limitation to 90 nights per year for an entire primary residence, beyond which the situation shifts to a more restrictive regime;

– prohibition on permanently withdrawing homes from the classic rental market to turn them into full-time Airbnbs.

For an investor, the conclusion is clear: tourist rentals in Brussels remain possible, but within a strict framework and for limited volumes. The “entire property as a full-time Airbnb” model is becoming increasingly difficult to sustain.

Wallonia and Flanders: Registries, Permits, and Controls

In Wallonia, any vacation rental must be declared to the General Commission for Tourism and, since 2023, require a specific urban planning permit for tourist exploitation (except for rare exceptions). A fire safety certificate is mandatory.

In all three regions, taxation of tourist rentals has become stricter:

– obligation to declare income, with possible reclassification as professional income depending on the frequency and scale of the activity;

– potential application of VAT (at 6% for the supply of certain services, notably in the case of furnished short-term rentals);

– automatic data transmission to tax authorities beyond certain income or transaction thresholds.

Gross profitability can still be very attractive (often 2 to 3 times a classic rent if the booking calendar is well filled), but administrative constraints, control risk, and tourist demand volatility make this a field for experienced investors.

Investor Profiles and Winning Strategies in 2025

Investing in real estate in Belgium requires adapting one’s strategy to one’s budget, risk tolerance, and investment horizon.

In all cases, three key lines now structure any decision:

– thorough mastery of regional rules (registration duties, subsidies, rental constraints);

– systematic integration of the energy dimension (cost of works, EPC trajectory, impact on price and rent);

– anticipation of usage evolution (teleworking, coworking, mobility, rent control), especially in large metropolitan areas.

Investing in real estate in Belgium remains a solid strategy for those willing to inform themselves deeply and think long-term rather than seek “easy” short-term yields. In a market where prices continue to rise but rules are tightening, the advantage increasingly goes to those who master the numbers… and the texts.