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Nowhere in Belgium is too far, and with house prices appreciating steadily and healthy yields and interest rates laying low for the past two years, investor buying power has never been stronger. Many seeking a respite from the grey-suited conformity of the capital are heading south to the cushioned idyllic surroundings of the Ardennes. Dominated by French speakers, but with a small Germanic community on its eastern borders, the region meshes the three provinces of Namur, Luxembourg and Liege, all cleaved by the Semois River, which flows though Belgium and France before emptying into the Meuse; its many twists and turns through forests and meadows reveal a smattering of towns and hamlets with an old-world vibe.
Having shadowed Flemish price rises in 2003 and 2004, property values are also catching up, though opportunities to get in at ground-level prices are still plentiful. “The region offers the best of rural Belgium,” says Rudi Merlo of Ourthe & Somme. “It’s less domesticated than the French Ardennes, with an economic base reliant on forestry and intensive farming. But niche tourism is coming into its own thanks to the growing demand for year-round outdoor pursuits such as hunting, skiing and hiking.”
One of the easier-to-access locations with a fan base of Dutch, Belgian and German buyers is the rugged Meuse Valley. “Investors looking for a weekend bolt-hole and somewhere quiet out of season tend to settle here,” adds Merlo, “offsetting their annual running costs by renting during the busier summer months. Turnkey holiday village property is a lucrative market, with many resorts just a one-hour drive from the capital.” Located in Hastière on the banks of the River Meuse between Dinant and the French border, Domaine du Bonsoy is one of the area’s newest additions.
Set in 170 acres of forest and ideal for families, it offers such on-site facilities as a swimming pool, tennis courts and a fishing lake. Quaint stone-built bungalows with small terraces range from €25,000 to €55,000, with newly built contemporary two-bedroom properties starting at €110,000. Owners can also sign up to the resort’s seasonal rental programme running in the summer and winter months.
Those keen on some acreage will fare well in the outlying satellite villages around Dinant, as local agents’ books are sporting a healthy stock of competitively priced detached homes.
In Sorinnes, the gastronomic capital of the Walloon region, Homes Go Fast is selling a 17th-century, four-bedroom fortified farmhouse with barns, stables and guest annex, with additional outbuildings for conversion. The property boasts oak flooring, natural slate roof tiles plus acres of pasture land with an asking price of €1,039,800. In the nearby village of Natoye, ImmoWeb is marketing a stunning four-bedroom house with a pool and a beautifully landscaped garden for €215,000, while the neighbouring hamlet of Heure has a charming “retirement” bungalow in a forest setting overlooking a small lake for €186,000.
Further south in the flatter Rabais Valley, Ourthe & Somme are guaranteeing rental yields of 6% per annum over five years in the Clos des Horles resort in Virton. Split-level two-bedroom chalets with lake views cost between €47,000 and €52,000, depending on plot size.
Working its badge of affluence to full effect, Knokke-Heist deserves its reputation as the glitziest resort on the Flanders coast, its centre brimming with art galleries, restaurants and a coterie of designer boutiques. Just 90 minutes from downtown Brussels, the town has ambiance that’s been likened to Saint-Tropez – its belle époque and art deco remnants hinting at a bygone era when the upper crust gathered to “chill”. “Knokke has a well-behaved atmosphere,” says Frederic Declercq of Immo De Nil. “It’s predominantly modern, but it’s one of the easiest slices of seaside life with mild weather, great food and a smart Belgian style. Plans underway to upgrade the existing casino and build a new five-star hotel will also broaden its appeal.”
Property has enjoyed something of a mini-boom since the late ’90s, with average prices rising by 9.4% in 2004, then just slightly down to 8.9% in 2005. “Real estate values are impressive,” adds Damien de Robertis of Bonehill, “with last summer’s figure for front-line penthouse apartments up by 160% on 1998. Stringent planning restrictions and limited coastal sites keep prices high, plus property owners tend to sit tight rather than trade up every few years.”
Declercq explains that price brackets are also district sensitive with little overlap – a one-bedroom apartment in the quieter Heist starts at €250,000 but it would cost upwards of €3m for a beachfront villa in the exclusive district of Het Zoute. Declercq says that rentals are lucrative but have a seasonal bias: “The first influx begins at Easter, when the streets of Brussels and Antwerp are suddenly empty because so many people have taken one- or two-week holidays – or at least a four-day weekend. The crowds swell on summer weekends but the beaches are never teeming.” July and August can command €600-€1,000 per week for a two-bedroom apartment or between €900 and €1,600 for a three-bedroom house, with rental premiums on a par with those on the Côte d’Azur.
On the market with Immo De Nil is a stunning architect-designed, five-bedroom villa close to the golf club complete with wine cellar, swimming pool and pool house for €3.9m. Additional features include an office, garage and numerous outbuildings. Further up the coast in the fashionable district of Duinbergen, Bonehill is marketing a two-bedroom luxury “villa-style” apartment in the Residence Ten Dyke complex for €595,000, complete with fully equipped kitchen and intercom access.
With a property downturn unlikely in the foreseeable future and prices expected to move in a similarly steady fashion, buyers’ prospects look healthy. “Investors recognise the fundamental value that exists in the local market,” adds Robertis. “Property appreciation may not be as high as the Spanish or British markets, but the key word is stability. For those who recall the fluctuations elsewhere in previous property cycles, the lower-risk profile of Belgium is a very persuasive attribute.”
Belgium’s real estate market is healthy, but here are a few key facts to remember as you buy
- Stamp duty is levied at 10% in Flanders. Notary and other fees can drive the overall cost up by as much as 15-17% of the value of the property.
- If the property is sold within two years, some of the stamp duty can be clawed back.
- If the property is sold within five years, capital gains tax of one third is levied on the profit made at a flat rate of 16.5%, with no CGT payable after five years.
- VAT is chargeable at 21% on newly built property.
- Tax is payable on the deemed rental value of the property, which is dependent on location and use. National rates of 1.25-2.5% and municipal and provincial surcharges also apply.
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