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Investors sniff back to real estate (Belgium)

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  • Investors sniff back to real estate (Belgium)

    The Belgian real estate professionals still headed off on a weak to moderate in 2010. There are growing indications that the sector has been the worst.

    The vacancy rate in the Brussels market rose to 11.6 percent, the highest level of the decade. According to figures from the estate agent Jones Lang LaSalle (JLLS) for the first six months of 2010. Near South Station is the only thing today is a shortage of office. In the periphery of Brussels is the vacancy rate up to 22.3 percent.

    The increase in vacancies in the second quarter was mainly due to the completion of some speculative (non-pre-leased) projects. "Over the next 2.5 years is only 360,000 sqm of new office projects are expected. That is just as much as in the whole 2009. Moreover, already 80 percent pre-leased. Many companies and governments seek a sustainable building. They are quite scarce.

    Rental market

    The rental market today seems on track for a great 2010 record of 400,000 m², the average over the past five years, to get. In recent months, mainly large companies operating in the context of their restructuring. BNP Paribas names together and Infrabel quarter of the entire market on their behalf. The vacancy rate and the crisis still weigh heavily on the market. Depending on the source refers to a decline in economic rents in 2010 with 8 to 20 percent. Which are significantly lower than the official (facial rents) due to the many extra benefits offered to new tenants (up to two years free rent, relocation allowance).

    After an historical record low in the first quarter (200 million euro) the amount of investment in real estate professionally in Belgium increased from 350 to 400 million euros in the second quarter. It is still fighting to do as good as the 1.5 billion euro in 2009 made itself.

    More potential buyers begin to inquire, not only on absolute locations. "There is more liquidity. Super Great Deals from 100 million euros are still not evident, "says Norbert Muller, International Director of European Capital Markets JLLS.

    73 percent was purchased by Belgian players. First, insurers are looking for long-term cash flows (Integral, AXA Belgium ,...). There are also wealthy private actors who choose retail as a relatively safe investment, and smaller Sicafis (Aedifica, Retail Estates).


    More and more developers on the car market. Capital Europe, an Anglo-Saxon private equity player, anticipates the purchase of the project Realex Dexia on the redevelopment of the Rue de la Loi. Kairos developer put together with the investment fund Befimmo on the public sale of the headquarters of the water producer Vivaqua 22.25 million euros on the table. Within two weeks because there was a higher bid, following public half sales in September. "Developers are beginning to prepare for a real resurgence in demand for office space within two to three years," Norbert Muller interprets it.

    Source tijd.be