Investment Opportunities in Belgian Commercial Real Estate

Published on January 17, 2026 and written by Cyril Jarnias

For a long time, the Belgian real estate market was perceived as discreet but solid, far from the spectacular surges seen in some neighboring countries. Today, however, “commercial real estate Belgium” is attracting more and more capital from both institutional and private investors, local and foreign alike. The main reason: a rare balance between macroeconomic stability, a secure legal framework, decent yields, and market depth—all in a country that remains the administrative heart of the European Union.

A Macro and Regulatory Environment Tailored for Investors

The appeal of Belgian commercial real estate first lies in the overall context. The economy is diversified (services, industry, logistics), the country boasts an AA sovereign rating with a stable outlook, inflation back around 2–3%, and growth expected around 1–2% annually until 2028. The population is highly urbanized (98%) with a strong presence of international labor, especially in Brussels.

The legal framework is known for being transparent and protective: a structured civil law system, extensive case law, stable institutions. Property rights are strong (score of 92/100 on the International Property Rights Index, well above the global average), corruption is limited, and the volume of legal disputes remains moderate. For a foreign investor, Belgium does not foresee discriminatory treatment: no ownership restrictions, same rights as a resident, and an extensive network of double taxation treaties.

Dedicated Real Estate Investment Structures

One of the specificities of the Belgian market is the wealth of its regulated real estate vehicles.

SICAFI, SIR, B‑REIT: The Listed Backbone

The local REIT market is ancient by European standards: the SICAFI regime (Société d’Investissement en Immobilier à Capital Fixe) was introduced as early as 1995, inspired by American REITs. Today, these structures have been modernized into SIR/B‑REIT, but the logic remains the same: fixed-capital, listed companies, highly regulated by the FSMA (Financial Services and Markets Authority), with a requirement to distribute at least 80% of operating profit, limited leverage (maximum debt 65% of assets, a 50% threshold triggering a financial plan), and a favorable tax regime (virtually no taxable base, taxed mainly on abnormal benefits and non-deductible expenses).

Historically, these vehicles have delivered:

– superior long-term total returns,

– a favorable risk/return profile,

– moderate correlation with the Belgian stock market, useful for diversification.

By market capitalization, the Belgian REIT market is the second oldest and the fifth largest in Europe, with a sector capitalization</strong of nearly €5.8 billion for 16 REITs in the mid‑2010s. Even today, 72% of institutional investors surveyed consider the Belgian listed sector a "safe haven” during turbulent periods.

SREIF / FIIS: Specialized Real Estate Funds for Qualified Investors

Beyond listed REITs, Belgium has developed another key component: the Specialized Real Estate Investment Fund (FIIS / SREIF – GVBF), reserved for institutional or professional investors. These unlisted funds benefit from a special tax regime: rental income and capital gains are in principle not taxed at the fund level, only an annual 0.01% tax on net Belgian assets is due. In return, they comply with a list of eligible assets (real estate rights, shares in property companies, etc.) and specific governance rules.

A Market Considered a “Safe Haven” by Institutional Investors

Leading consultancy firms (CBRE, JLL, BNP Paribas Real Estate, Cushman & Wakefield) describe the Belgian market as “stable and mature,” with less violent cycles than in other European countries. After the Covid shock and the rapid rise in interest rates, the commercial segment adjusted but without a crash. Central banks have begun lowering policy rates, bond yields are stabilizing around 2.5–3.2% for the 10‑year OLO, and real estate investors surveyed by CBRE and JLL report renewed appetite for 2025.

A CBRE Belgium survey of 25 major investors and developers thus shows an intention to allocate €3.7 billion to Belgian commercial real estate in 2025, or nearly €150 million per player. The same panel forecasts €2.3 billion in disposals, suggesting an active but balanced market, with numerous portfolio shifts and a rise in value‑add and opportunistic strategies.

Where Are the Best Sector Opportunities?

Belgian commercial real estate is not limited to Brussels offices. Logistics, semi‑industrial, peripheral retail, managed residential, healthcare, hotels, or self‑storage show very different dynamics. Sentiment surveys and capital flows help rank these segments.

Logistics and Warehouses: The Engine of the Decade

If there’s one sector with consensus, it’s logistics. The country naturally plays the role of a European hub, squeezed between the Port of Antwerp‑Bruges, the Antwerp–Brussels–Liège axis, and the Dutch border. Logistics and warehousing represent a market of €16.2 billion (logistics in the broad sense) and about €5.5 billion for warehousing activity alone in 2025. The Belgian warehousing sector ranks:

– 8th in Europe by revenue,

– 5th in Europe by turnover in 2023,

– with a CAGR of 5.2% between 2020 and 2025.

The national logistics action plan 2020‑2025 injected about €300 million into infrastructure and innovation, while the entry into force of the new EU Customs Code improved customs clearance times in Antwerp by 9%.

A Growing Market, Despite a Slight Rebalancing

Occupier take‑up volumes remain high: over two million square meters were absorbed in a recent year, a historic record for Belgium, and 3 million square meters of large warehouses were built between 2013 and 2019. After this very tight phase (vacancy rates around 1% in 2020‑2021), the market is normalizing.

Some recent key figures:

Belgium Logistics Indicator	Recent Value	Comment
Logistics Take‑up 2024	927,000 sq m	-30% vs previous year, but still high
H1 2025 Take‑up (Log. + Semi‑Ind.)	686,590 sq m	326,327 sq m logistics, 360,263 sq m semi‑industrial
Logistics Vacancy H1 2025	4.79%	<3% for the total warehouse stock, 2.16% on the Brussels–Antwerp axis
Pipeline Under Construction H1 2025	563,204 sq m	28.7% still available for lease

Prime rents have risen sharply: a rent of €55/sq m/year in Brussels in 2020 rose to 60 then €64/sq m in 2022, and reached €75/sq m/year by end‑2024 then €80/sq m in H1 2025 for intra‑muros Brussels. On the A12/E19 axis, rents are around €68/sq m/year, Liège €65/sq m, Charleroi €50/sq m.

On the valuation side, prime logistics yields bottomed around 4% in 2022 before easing to 4.5–5% with rising rates, then re‑tightening to 4.75% in H1 2025, a sign of renewed investor appetite for top‑tier assets.

Powerful Structural Drivers

Several structural trends fuel this segment:

Major players in the sector (WDP, Montea, CTP, VGP, DHL Supply Chain, DSV, H.Essers, CEVA Logistics, DB Schenker) continue to expand their platforms: for example, DHL added over 50,000 sq m near Antwerp, DSV expanded its Ghent site, H.Essers is investing €40 million in Genk.

For an investor, opportunities are multiple: buying existing logistics boxes (often with added value through energy modernization), partnering with developers on built‑to‑suit projects, or investing through logistics SIRs like WDP or Montea.

Offices: Polarized Market, but Yields Still Attractive

Offices have historically been the pillar of Belgian commercial real estate, especially in Brussels, which has nearly 13.8 million sq m of office stock. But the rise of remote work and the shift towards high‑performance buildings have profoundly changed the equation.

A Segment in a Digestion Phase

In 2025, the numbers speak for themselves:

– overall vacancy rate in Brussels around 8–8.7%, gradually increasing, with strong disparities: 5.8% in the CBD (Leopold/European Quarter), over 12% in decentralized areas, and nearly 16% in the periphery;

– H1 2025 take‑up around 170,000 sq m, down 8% from the previous year, despite several major transactions (European Union >40,000 sq m, Deutsche Bank on Meeus 29, Loterie Nationale on Brouck’R);

– 75% of leased square meters concern “Grade A” buildings, illustrating a flight to quality.

Yet prime rents remain very resilient:

Office Market	Prime Rent (€ / sq m / year)	Approximate Vacancy
Brussels – CBD (European Quarter)	400	~8% overall, 5–6% for top assets
Brussels – City Center	340–390	vacancy slightly rising
Antwerp – Prime	200	vacancy around 4.4%
Brussels Periphery	185	vacancy exceeding 15%

Prime yields are around 5.15–5.25% in Brussels for standard leases, slightly lower (around 4.7%) for very long leases (>9 years). These levels have remained stable for about 18 months, as the market seeks new equilibrium points after the interest rate shock.

Work Hybridization: Threat or Opportunity?

On the occupier side, studies on work practices show that remote work is here to stay: about one‑third of Belgian workers telework at least one day a week, 42% in Brussels, with a typical frequency of two to three days in the office. Employees favor flexibility and time saved on commuting, which weighs on net demand for space.

For the investor, this means:

– vacancy and obsolescence risk for second‑category buildings (Grade B/C), in peripheral roadside locations;

– value‑add opportunities through major renovation, restructuring, or conversion (to residential, coliving, hotel, etc.);

– a price premium for core ESG‑compliant assets in the heart of the CBD or in multimodal hubs.

Development pipelines reflect this shift: over 80% of ongoing projects aim for environmental certification (BREEAM, WELL, etc.), but only 42% of sq m to be delivered by 2026 are pre‑leased, compared to an average of 70% between 2015 and 2021. The risk of oversupply of poorly positioned new office space exists, but it comes with opportunities for investors capable of structuring upgrade plans.

Retail: Between Selective Renaissance and Premium for Retail Parks

The retail sector has been shaken by the pandemic and the rise of e‑commerce, but Belgium shows a paradoxical situation: fundamentals are described as “very solid,” with a rebound in leased space and strong appetite for retail parks and retail warehouses.

Gradual, but Selective Recovery

In 2024, retail space take‑up reached nearly 200,000 sq m in the first half, with a 12% increase in the first three quarters of 2025 to 341,000 sq m. Vacancy rates remain low nationally and continue to fall in several segments. Prime rents are stable, even rising in some key locations:

Retail Segment	Prime Rent (€ / sq m / year)	Recent Trend
Meir (Antwerp – high street)	1,700	stable
Rue Neuve (Brussels – high street)	1,650	stable
Retail Warehousing Antwerp/Brussels	185	+6 to 9%
Prime Shopping Centers (Wijnegem, Woluwe)	1,275–1,300	+2 to 6%

Investment is very clearly concentrated in retail warehousing, representing over 80% of volumes in 2025, with 81% growth in one year. Shopping centers, however, are making a comeback opportunistically, driven by spectacular operations like the conversion of former Cora hypermarkets by Mitiska and the arrival of new brands (Lululemon, Medi‑Market, fashion groups, etc.).

In contrast, investment in high streets remains more timid, with investors being extremely selective about streets and storefronts, and factoring in the structural risk related to the rise of digital.

Why Retail Parks Appeal to Investors

Several characteristics make Belgian retail parks particularly attractive:

– ample parking, easy road access, lower rents per sq m than city centers;

– mix favoring food, DIY, home furnishing, and discount stores, less sensitive to online sales;

– lower operating costs and manageable reconfiguration CAPEX, facilitating adaptation of the offer;

– proven resilience during the health crisis, with limited vacancy rates.

Prime retail yields (excluding very prime high street) are around 4.7% for top assets, but can be significantly higher for secondary parks offering repositioning potential.

Residential “Living,” Healthcare, Student Housing: The Rise of Operational Assets

The “living” segment in the broad sense has become the second choice for investors after logistics in JLL/UPSI‑BVS surveys. The combination of demographic growth, rental shortages in major cities, an aging population, and demand for student housing creates a robust demand base.

For 2025, capital planned for investment in multifamily housing in Belgium is estimated at €460 million, with expected yields potentially as low as 4.5% for the most aggressive investors. The goal: securing stable, indexed rental income in a low real‑rate environment.

Specialized SIRs illustrate these trends:

Company / SIR	Specialization	Portfolio Value (≈ end 2023)
Aedifica	Healthcare real estate (care homes, clinics)	€5.85Bn for 617 sites
Care Property Invest	Healthcare real estate only	€1.25Bn
Cofinimmo	Healthcare (≈75%) + offices	€6.2Bn
Home Invest Belgium	Residential rental (Brussels, Flanders, Wallonia, NL)	€704.9M
Xior	Student housing across several European countries	€3.22Bn

These players often benefit from favorable tax regimes on dividends (reduced withholding tax rate to 15% for some healthcare assets) and very non‑cyclical demand. Niches like student housing or senior living residences also show high occupancy rates and the ability to index rents.

For an investor, it is possible to position oneself:

– either via these specialized SIRs, for a diversified and liquid exposure;

– or via direct acquisitions (residential buildings in Brussels, Antwerp, Ghent, Leuven, Liège, Charleroi) taking advantage of very strong rental pressure, especially on renovated and energy‑efficient products.

The Tax, Regulatory, and Financial Angle: A Major but Complex Asset

Beyond sector choice, the attractiveness of Belgian commercial real estate also plays out on three levels: taxation, public incentives, and financing conditions.

A Competitive but Technical Tax Regime

Regarding corporate tax, the standard rate is 25%, with a reduced rate of 20% on the first €100,000 of profit for SMEs. But many real estate vehicles benefit from special regimes (SIR, SREIF, etc.) that neutralize tax on real estate income and capital gains, at the cost of distribution and leverage constraints.

For the shareholder investor:

– dividends from public SIRs are in principle subject to a 21% withholding tax (25% for institutional SIRs), with possible reductions (0% if the SIR invests more than 60% in Belgian private residential housing) and exemptions under the parent‑subsidiary directive for eligible European shareholders;

– capital gains on shares realized by a resident individual are generally exempt if they are part of normal wealth management and not speculative;

– for a Belgian corporate shareholder, the RDT deduction (95%) may apply, or even full exemption for capital gains on shares meeting the participation criteria.

For direct asset acquisitions, registration duties remain significant (often 10–12.5%, even 10.4% on some commercial assets), although Flanders introduced a reduced rate of 3% for owner‑occupied housing and allowances. For commercial real estate, VAT must also be considered (21% on new builds, with the possibility of a VAT regime on the lease for some office or logistics buildings).

Registration Duties and VAT on Property Acquisitions

Federal thematic investment regimes add extra appeal for sustainable projects: increased deductions for energy efficiency, renewable, low‑carbon mobility, and digitalization investments. From 2025, a 30% thematic deduction is introduced for certain green and digital investments, combinable with indefinite carry‑forward of unused fractions.

The regions (Flanders, Wallonia, Brussels‑Capital) complement this arsenal with direct grants (energy renovation, industrial ecology, decarbonation, Brussels “renolution”), reductions in property tax for high‑performance buildings, and targeted allowances on equipment.

Real Estate Finance in a Phase of Easing

After the tense phase of 2022–2023, the commercial real estate lending market is returning to calmer waters. 5‑year swap rates are stabilizing around 2.1%, the ECB has lowered its rates several times, and bank margins have started to contract.

Key trends observed:

The entry into force of Basel 4 in 2025, however, is pushing banks to use more standardized risk models and base themselves on prudent values, which could increase the cost of capital for some projects, to the benefit of more flexible debt funds and insurers.

For investors, the market also offers a complete range of products:

– classic investment loans (up to 20 years);

– real estate leasing (notably via KBC);

– bridging loans and bridge financing via specialized players (Fiduciam, Swishfund);

– joint‑venture partnerships, structured debt via the Debt & Structured Finance departments of major advisory firms.

The ESG Undercurrent: From “Green” Label to “Brown” Risk

It is impossible to analyze Belgian commercial real estate without mentioning the ESG revolution. European regulations (Energy Performance of Buildings Directive, Fit for 55 package) impose a massive upgrade of the building stock, responsible for about 40% of energy consumption and 36% of CO₂ emissions. Regional authorities set renovation obligations, minimum performance standards, and major corporate users are adopting ambitious Net Zero trajectories.

Certifications and Performance: More Than a Marketing Bonus

In Belgium, the dominant certification is BREEAM, but we also see a proliferation of labels like LEED, WELL, DGNB, HQE, even NABERS for operational performance. International studies converge:

As certifications become more common, the “green premium” tends to fade, giving way to a “brown discount”: the challenge becomes avoiding being in the quartile of obsolete, energy‑hungry assets exposed to risks of prolonged vacancy and exploding CAPEX.

In this context, Belgium has developed its own tools, complementary to international standards:

– TOTEM, which measures the environmental impact of construction materials;

– the GRO method, a Flemish sustainability guide for construction and urban planning projects;

– the Ref‑B framework, a national benchmark for assessing and certifying sustainable offices and homes.

For the investor, these tools allow for calibrating the renovation strategy and communicating with tenants and lenders, who are increasingly attentive to decarbonization trajectories.

From Offices to Warehouses: ESG Everywhere

The ESG dimension now runs through all segments of Belgian commercial real estate:

Landlords who anticipate these developments by integrating energy renovations into their business plans not only capture operating cost savings but also gain easier access to financing and higher‑quality tenants.

How to Position Yourself Concretely in Belgian Commercial Real Estate?

The diversity of vehicles and segments requires clarifying one’s strategy. The main axes of choice involve the degree of operational involvement, the investment horizon, risk appetite, and ticket size.

Listed Investment: Belgian SIRs and REITs

For an investor seeking diversified, liquid, and tax‑optimized exposure, the Brussels stock exchange offers a complete panel of SIRs:

– logistics (WDP, Montea);

– offices and healthcare (Cofinimmo);

– pure healthcare (Aedifica, Care Property Invest);

– residential rental (Home Invest Belgium);

– retail (Retail Estates, Wereldhave Belgium, Vastned Belgium, Ascencio, Qrf);

– student housing (Xior);

– small‑cap mixed (Immo Moury).

Direct Assets: Between Core and Value‑Add

For the more entrepreneurial investor, several strategies are possible:

– core / core+: acquisition of recent, well‑leased office or logistics buildings, or well‑anchored retail parks, offering a moderate but stable initial net yield;

– value‑add: purchase of secondary assets (B/C offices, secondary retail, obsolete logistics assets) to reposition them: heavy renovation, reconfiguration, change of use, energy improvement, obtaining certifications;

– opportunistic: development of new projects or heavy conversions (offices to residential, urban brownfields to mixed‑use) in renewal areas (Brussels canal, regenerating neighborhoods in Charleroi, Liège, Leuven).

Indicators to Monitor Before Investing

Market studies highlight several selection indicators for REITs and physical assets:

– premium/discount level relative to NAV;

– net dividend or rental yield, and payout ratio;

– leverage ratio (45–50% often seen as an acceptable compromise);

– portfolio quality and location;

– sensitivity to interest rates and refinancing ability;

– degree of ESG alignment (energy label, certifications, decarbonization trajectory).

In the current context, where rates seem to have reached a plateau and the ECB fuels prospects of a gradual decline, assets with long‑term indexed income are regaining favor, especially when coupled with a good ESG story.

A Stable but Not Risk‑Free Market

Belgian commercial real estate is not exempt from risks. Surveyed investors cite as primary concerns: recession risk, return of inflation, political instability, global macroeconomic shock (e.g., via disruption of international trade or the introduction of high tariffs by major partners).

Other specific risks concern:

These risks are, however, counterbalanced by several factors:

– the depth of a solid banking system, now more prudent but still active;

– a developed capital market (listed SIRs, specialized funds, institutional investors) capable of recycling assets;

– a tenant demand underpinned by the geopolitical position (EU, NATO, multinationals, Port of Antwerp, logistics hubs);

– a base of real yields still attractive compared to government bonds.

Conclusion: Why Belgian Commercial Real Estate Remains a Serious Option for 2025 and Beyond

For an investor seeking recurring income, geographic diversification, and resilience, “Belgian commercial real estate” offers a combination of assets that is not often found:

The challenge for the investor is no longer whether to have exposure to Belgian commercial real estate, but rather how to be exposed: via which segments, which vehicles, with what level of risk and added value. In a world where the premium for truly sustainable assets adapted to new uses will only grow, the Belgian market appears as both a robust investment ground and rich in arbitrage angles for those willing to meticulously work on asset selection and ESG strategy.