In the first quarter of this year, the number of deeds for the purchase of real estate is lower than in the same period last year and in 2021. There is also a quarter-on-quarter decline. “Nevertheless, we see a clearer decline in investment purchases,” says the minister.
Investment purchase deeds fell from 24,169 in the first quarter of 2021 to 20,841 in the first quarter of 2022, and to 16,331 last quarter, or a 32 percent drop in two years. Rising interest rates make it more expensive to borrow, which weighs on an investor’s rental yield.
In addition, due to rising interest rates, real estate also faces more competition from other investments. Bonds and term deposits now offer higher coupons and interest rates than they did during years of central banks’ zero-interest policies.
There is also a decrease for family homes, if you compare the first quarter of 2021 with that of 2023: from 14,009 to 12,176 deeds, a drop of 13 percent.
The fact that the decrease is less pronounced for family homes is, according to Diependaele, partly due to the reduction in registration tax a year ago. This supports the purchase of a first home. “By lowering the amount that buyers have to save together before entering the housing market, we help them to take their first steps on the Flemish housing market,” he says.