Single renters suffering as prices of smallest apartments rise fastest
Rents for small flats are rising twice as quickly as rents for larger apartments, according to the annual rent barometer by real estate group Dewaele. A one-bedroom flat now costs an average of 753 euros a month, up 3.8 per cent in a year, compared to two-bedroom flats at 881 euros a month, up 2.5 per cent.
“Singles in particular are coming under increasing pressure in the rental market,” the group said. “Small flats are scarce and are experiencing the strongest price increases, while single people often have less financial buffer. Over the past four years, the rent for a one-bedroom flat has risen by 23 per cent.”
The increase for small flats is higher than inflation, meaning these tenants are losing purchasing power. More than a third – 36 per cent – of Belgians are single, and the number is expected continue to grow in the coming years.
The fact that the rental market is overheated is also evident from the number of candidates for a property, Dewaele says. Last year, there were an average of 38 prospective tenants per available rental property – double the number four years ago. At the same time, the number of rental properties fell.
“There is a structural and ever-growing imbalance between supply and demand,” the group says, adding that without targeted expansion of the rental supply, the pressure will continue to increase.
"Small flats are scarce and are experiencing the strongest price increases, while single people often have less financial buffer"
The group is calling for a “clear and stable long-term policy with sufficient legal certainty for investors”.
VAT on new constructions has been reduced to 6 per cent. At the same time, however, investors are losing a number of tax incentives, such as the federal housing bonus. Dewaele also criticises the licensing policy, whereby the construction of compact residential units often encounters local resistance and an overly complex licensing process.
Illustration © PHOTO BELPRESS
Related news
