Economic Context
Belgium’s economy experienced moderate and stable growth in 2025, with GDP rising by 1.02% year-on-year. Inflation eased to 2.2% by December 2025, and financing conditions stabilised as ECB policy rates remained unchanged since June 2025. The unemployment rate increased to 6.15% in 2025, with a further slight rise expected in 2026, reflecting ongoing labour market and pension reforms. Overall, the economic environment is characterised by steady growth, controlled inflation, and stable interest rates, supporting investment confidence.
Demand Overview
Demand in the Belgian living sector remains robust, underpinned by demographic trends such as population growth, ageing, and a gradual decline in average household size. The number of new rental agreements declined to historically low levels—below 50,000 in Flanders and under 9,000 in Brussels—reflecting persistent supply constraints. Tenant competition has intensified, with more than 30 candidates per apartment reported in 2025, compared to around 10 in previous years. High occupancy rates are evident across all residential segments:
- Home Invest Belgium and Xior Student Housing reported occupancy rates around 98%.
- Care Property Invest’s senior housing portfolio achieved 100% occupancy, with underlying operator levels at approximately 94.5%.
Major investment transactions in H2 2025 included the €280 million Cityforward portfolio acquisition by Home Invest Belgium and the €142.6 million Korian senior housing portfolio acquired by Care Property Invest.
Vacancy Trends
Vacancy rates remain exceptionally low across all residential segments, with institutional landlords reporting occupancy rates near or at full capacity. The imbalance between limited supply and sustained demand continues to drive high occupancy, particularly in multi-family, student, and senior housing. There is no indication of significant sublease activity impacting total availability.
Rent Trends
Rental growth persisted in 2025, supported by supply constraints and strong tenant demand. Average monthly apartment rents reached €1,330 in Brussels, €907 in Flanders, and €810 in Wallonia. The growth index for apartment rents has shown a consistent upward trend since 2020. Landlord concessions are not highlighted, and the competitive environment suggests continued upward pressure on rents.
Construction & Supply Pipeline
The market continues to face structural supply constraints, with stricter energy performance requirements and low tenant turnover limiting new rental supply. There is ongoing conversion activity, notably the Cityforward portfolio involving the transformation of former office buildings into residential units in Brussels. However, no significant new construction starts or completions are detailed, indicating that supply additions remain limited relative to demand.
The Belgian living sector in H2 2025 is characterised by strong demand, high occupancy, rising rents, and stable investment conditions, underpinned by persistent supply constraints and supportive demographic trends.
