Real estate investment in Belgium remained stable at €553m in this year’s first-quarter compared with the same period in 2011.
According to research by Savills, the retail sector accounted for 50% of the figure, which was 32% above the last quarter of 2011. Based on the report, 37% of the total turnover, or €191m, was registered in Brussels. Office turnover dropped to €99m.
“We have seen a good start to the year in the investment market, especially in the retail sector, owing to the availability of products meeting investor requirements and institutional investors choosing to diversify their portfolios with retail assets,” says Gregory Martin, Savills Belgium’s managing director.
According to the Savills, take-up in Brussels dropped to 95,168 m2 in this year’s first quarter compared with 115,224 m2, with 65% of the total figure being transacted in the central business district. EU institutions accounted for 36% of the figure.
Prime rents in the CBD dropped by 2% to €290 per m2 per year compared with last year’s first quarter. Prime rents remained stable in the rest of the city but fell by as much as 15% in the city’s periphery. Vacancy was stable at 11%.
“Some businesses are still cautious and postponing office relocations,” says Julie Depierre, head of research Savills Belgium, “but now that the political deadlock has ended, we expect to see more letting activity in the Brussels office market, particularly from the Belgian administrations.”
