Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Belgium

Belgium

In Belgium, the revenue of the Residential Real Estate Leases market market is estimated to reach US$20.63bn in 2024.
House Leases dominates this market segment, with a projected market volume of US$11.08bn in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 4.78%, leading to a market volume of US$26.05bn by 2029.
Belgium's residential real estate lease market is experiencing a surge in demand due to its attractive location and stable economic environment.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Belgium is experiencing significant growth and development.

Customer preferences: In Belgium, there is a strong demand for residential real estate leases. Many individuals and families prefer to rent rather than buy a property due to various reasons. Renting provides flexibility and allows people to live in desirable locations without the commitment of purchasing a property. Additionally, renting can be more affordable in the short term compared to buying a home.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Belgium is the increasing popularity of furnished apartments. Many tenants, especially expatriates and young professionals, prefer to rent fully furnished apartments as it offers convenience and saves them the hassle of buying and moving furniture. This trend is driven by the growing number of expatriates and the increasing mobility of the workforce in Belgium. Another trend in the market is the rise of co-living spaces. Co-living spaces are becoming more popular among young professionals and students who are looking for affordable accommodation options that also provide a sense of community. These spaces typically offer shared facilities and common areas, fostering social interaction and a sense of belonging.

Local special circumstances: Belgium has a high population density, particularly in urban areas such as Brussels, Antwerp, and Ghent. With limited space available, the demand for residential real estate leases is high. This has led to an increase in rental prices, especially in prime locations. Furthermore, the Belgian government has implemented regulations to protect tenants' rights and ensure fair rental practices. These regulations provide security and stability for tenants, attracting more individuals to choose renting as their preferred housing option.

Underlying macroeconomic factors: Several macroeconomic factors are driving the development of the Residential Real Estate Leases market in Belgium. The country has a stable economy with a strong job market, attracting both local and international individuals seeking employment opportunities. This has increased the demand for rental properties. Additionally, low-interest rates on mortgages have made it more difficult for individuals to afford buying a home, leading to an increase in demand for rental properties. The high cost of homeownership, including property taxes and maintenance expenses, has also contributed to the preference for renting. In conclusion, the Residential Real Estate Leases market in Belgium is growing due to customer preferences for flexibility and affordability. The trends of furnished apartments and co-living spaces are reshaping the market, catering to the needs of expatriates, young professionals, and students. The high population density and government regulations contribute to the demand for rental properties, while the stable economy and low-interest rates drive the overall growth of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.