The Belgian housing market faces interesting developments in 2025, with both opportunities and challenges for potential buyers and existing homeowners. Let’s look at the main factors that will affect the cost of living in Belgium.
Rising house prices
ING forecasts an average increase in house prices of 3% in 2025, followed by a further increase of 3.8% in 2026. This growth is more moderate than the sharp increases during the (post-)corona period, but remains significant. Stabilizing mortgage rates play a crucial role in this, as potential buyers appear to be abandoning their wait-and-see attitude.
Regional differences
Price trends will not be uniform across Belgium. In Flanders, for example, changes in legislation are expected to put upward pressure on prices. A more significant price increase is predicted for Wallonia, partly due to the reduction in registration fees.
Energy efficiency as a price factor
A striking trend is the growing price difference between energy-efficient and energy-wasting homes. The relaxation of the renovation obligation in Flanders from January 1, 2025 is expected to lead to a price increase for energy-wasting homes[4]. Paradoxically, this may actually make the situation more difficult for buyers of energy-efficient homes.
Government measures
Several government interventions will affect the housing market in 2025:
- Reduction in registration fees: In Flanders, registration fees for the purchase of a first and only home are decreasing from 3% to 2%. In Wallonia, an even more drastic reduction from 12.5% to 3% is planned.
- Flemish Housing Guarantee: This new scheme should help young buyers get a mortgage loan faster.
- Relaxation of renovation obligation: In Flanders, new owners will have six years to bring their homes to energy label D, instead of the current five years.
Affordability under pressure
Despite these measures, housing affordability remains a concern. More than half of Belgians believe that housing is already unaffordable, and a majority expect the affordability of energy-efficient housing to deteriorate further.
Income Development
Housing affordability is closely related to income trends. Although recent figures show a slight decline in average net equivalent household income (-5% between 2022 and 2023), the long-term trend is positive. Between 2006 and 2023, average household income increased by 16%.
Renovation and energy conservation
A major factor in overall housing costs is energy consumption. ING research shows that 74% of homeowners have taken steps to save energy in the past three years. This trend is expected to continue, driven in part by rising energy prices and stricter regulations.
Conclusion
The outlook for the cost of living in Belgium in 2025 is mixed. On the one hand, rising house prices and the focus on energy efficiency will make access to the housing market more difficult for some groups. On the other hand, government measures such as reduced registration fees and the Flemish Housing Guarantee offer new opportunities, especially for first-time buyers. The key for households lies in carefully balancing the various factors. Considering energy-saving renovations, taking advantage of government support, and looking critically at the energy performance of potential homes can help control housing costs. Ultimately, 2025 will likely be a year of adjustment in the Belgian housing market, with both buyers and sellers having to adapt to new realities and opportunities in a changing economic and regulatory environment.