Our team of local Research experts give you the lowdown on all the latest Belgian commercial real estate market trends and outlook.
Cushman & Wakefield’s MarketBeat series leverages compelling in-house datasets and market-leading knowledge to provide all the latest coverage and analysis of activity across Belgium’s office, retail and industrial real estate sectors. Every quarter our MarketBeat reports dissect the occupier and investment markets, delivering insight into supply, demand and pricing trends at market and submarket levels.
ECONOMIC OVERVIEW
The Russian invasion of Ukraine and its repercussions have significantly deteriorated economic conditions. Due to its reliance on energy imports, Europe is severely affected, and Belgium is no exception. While GDP held up well in the first three quarters of this year, continued high inflation is expected to cause GDP to stagnate in the final quarter of the year and the first quarter of 2023.
Brussels Office
OCCUPIER FOCUS
In Q3, less than 100,000 sq m of take-up was recorded on the Brussels office market which brings the total take-up year to date to 230,000 sq m for 2022.
INVESTMENT FOCUS
In the third quarter of 2022, EUR 1.07 bn has been invested on the Brussels office market. This represents the best Q3 ever recorded.
OUTLOOK
Triggered by rising inflation, the European Central Bank has delivered two consecutive rate hikes in recent months, totalling 125 bps, and is expected to proceed with more rate increases in the coming months, according to its President.
DOWNLOADRegional Office
OCCUPIER FOCUS
Office demand in Flanders has been in line with its average levels in Q3 with 56,000 sq m of take-up recorded, which brings the current total in 2022 to 134,000 sq m.
INVESTMENT FOCUS
A volume superior to EUR 103 million has been invested in Flanders exclusively in Q3.
OUTLOOK
To counter inflation in the Eurozone, the ECB has raised its policy rate by 50 bps in July, followed by another 75 bps in September, with further raises expected by its President.
Retail
LETTING MARKET
Despite growing uncertainties and the decreasing consumer confidence index, letting activity is still at high levels in Q3 with close to 130,000 sq m of take-up recorded.
INVESTMENT MARKET
Though remaining at low level, the investment market records slightly better performances than in 2021.
OUTLOOK
Sustainability, environmental performances and ESG are on everyone’s lips since 2 to 3 years.
Industrial
INDUSTRIAL FOCUS
It is doubtful that semi-industrial demand will reach the dizzying heights of 2021, this year. That is not to say the take-up so far this year is poor...
LOGISTICS FOCUS
Post-pandemic increase of demand by retailers (despite the current colossal consumer confidence plunge), manufacturers and other key logistics players has caused well-documented supply chain backlogs, which in a sense are good for logistics real estate.
INVESTMENT FOCUS
Q3 has represented yet another colossal quarter for industrial investments, further building on the record year which was already achieved at the end of H1.
OUTLOOK
To counter inflation in the Eurozone, the ECB has raised its policy rate by 50 bps in July, followed by another 75 bps in September.
