The property rents in Brussels and the rest of Belgium have skyrocketed in recent years, the real estate sector claimed on Wednesday morning. Several economists were quick to respond: the inflation in recent years was higher than the hike in rent, so renting -in real terms- became cheaper. This doesn’t stop the real estate sector from demanding help from governments.
After the invasion of Ukraine, energy prices truly skyrocketed, causing inflation to jump up. Afterwards energy prices went down, but inflation still remains high, causing many sectors to ask higher prices for their goods or services.
Depending on the region, renting became 5 to 6 per cent more expensive last year, and some 10 to 15 per cent in the last two years, according to the sector. Is that a lot? Inflation last year was 2,3 per cent and 10,3 per cent in 2022.
The real estate sector admits a large part can be explained by the higher inflation, but still points to a couple of problems. Most of them have to do with the higher interest rates, caused exactly by the higher inflation. Young people can’t afford to buy their own home, because of the high interest rates, so they stay in a rental home. On the other hand, investors are putting their money more in investments that profit from the higher interest rates, instead of real estate.
The sector therefor wants tax advantages to broaden the offer and thus lower the prices. Left wing politicians plead for some sort of maximum for rents, but this will only lower the offer even more, the sector says.
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