2009, year nightmare of Belgian real estate

2009 was one of the worst years the Belgian property market has experienced, said Monday the group of real estate advisory firm CB Richard Ellis (CBRE) at a press conference later this year.

Market tumble
Besides the gloomy investment market, demand from tenants for the office areas and logistics are also settled. Only the retail sector has done quite well, maintaining a constant demand of international channels for new goods.

The office market in Brussels will close 2009 with transactions amounting to only 290,000 m2, while the 2004-2008 period known volume of annual transactions of 560,000 m2 on average. Other cities, like Antwerp, Ghent and Liege, were also hit by weak demand for office because of the economic crisis. Also, the vacancy rate in the professional market in India has increased steadily, driving down rents.

The logistics sector is also concerned. However, the vacancy rate remains relatively limited due to a smaller number of speculative developments.

As for the retail market, it has so far remained untouched. Despite a decline in consumer confidence, most commercial channels continue to explore opportunities for expansion.

Foreigners desert
Unlike previous years, growth remains limited to the best locations. Lower rents for secondary and tertiary locations in Belgium is therefore not excluded.

With 1.1 billion euros, the investment volume has reached its lowest level in 5 years. Foreign investors have proved to be notably absent from the year 2009, mainly because prices of the Belgian market have not adapted quickly as in more mature markets such as London or Paris, says CBRE.

The year 2010 promises better results, according to forecasts of the group. Since the fall, in fact, the number of investors expressed interest in the Belgian market has significantly increased. "This interest is reflected in a series of transactions in the first months of 2010. We expect at least that the investment volume in 2010 twice. In addition to the retail market, offices and logistics sector found favor in the eyes of investors, "the group concludes.