Saturday, May 06, 2006
Real Estate Prices Soar
The price of building plots in Flanders went up by some 20% last year. Meanwhile, house prices in Flanders went up by an average of 16% and more than doubled in some parts of Brussels.
The prise rises are the biggest since the 1970's.
Low interest rates and the banks' willingness to allow home buyers to stagger their mortgage repayments over a much longer period than was previously the case are both cited as causes of the increas
Filip Jansen from the study bureau Stadium told the VRT that the price rises are to blame on people being allowed to lend more.
"Everyone dreams of being able to buy a home that is just above their budget".
"If people are able to lend more by staggering their repayments over a longer period, they will be able to pay more for a home".
The prices adapt to the new market conditions and rise accordingly.
Houses in the Brussels districts of Schaarbeek, Sint-Joost-ten-Node, Etterbeek and Elsene have doubled in the space of a year.
The districts are in the East of the city and not too far from the European institutions.
Nevertheless, house prices there are still cheaper than in the affluent South Brussels suburbs of Ukkel, Watermaal-Bosvoorde, Oudergem and Sint-Pieters Woluwe.