After the shock, is the Brussels office market ready for a reset?

You can read the press release in Dutch & in French

Brussels, December 12, 2023 - As every year, JLL, one of the leading Belgian commercial real estate firms, provides an overview of the year 2023 for the Brussels office market and real estate investment.

After the record figures of 2022, the investment market experienced shockwaves in 2023. Here are the key points:

Financial shock: Prime office yields in Brussels increased by 100 basis points to 5%, a level not seen since 2015. Despite a slight increase in rents, the capital values of office buildings dropped by 28% compared to their peak in 2021, with an 18% decline on an annual basis. For a fully leased, prime-quality building in the Central Business District (CBD), the price per square meter now stands at €6,800.

Vincent Van Brée, Incoming Head of Capital Markets Belgium and Luxembourg (effective January 1, 2024), commented: "In just two years, Belgian bond yields have gone from barely half a percent to nearly 3% today, while short-term borrowing rates (EURIBOR) have gone from -0.6% to 4% in early December. This has had the consequence of disrupting the momentum of investors with high leverage and questioning the relevance of real estate investments compared to other asset classes." [...]

Read the complete Press Release in Dutch & in French