As the self-proclaimed "capital" of an enlarged EU, Brussels is witnessing a housing boom, particularly in the European Quarter. We investigate further

It may not have the architectural chic of Paris or speculative edge of London, but the property scene in Brussels is really hotting up and none more so than the area known as the European Quarter.

The European Quarter has become a highly-sought after area

By 2008-09 almost 1,000 new homes are to be built in the area of the city which houses most of the EU institutions. These homes will be spread over 11 building sites.

The construction work will provide residential accommodation for the scores of people who have moved to live and work in Brussels since the EU expanded in 2004.

Back then, no one was really sure exactly how big an impact the entry of a substantial part of the former Soviet bloc would have on the property scene in Brussels.

Fewer still knew how much money diplomats from, say Slovenia or Poland, would have to spend on property.

However, real estate agents say that much of the demand for property — particularly in the rented sector — is being generated by people from the 10 new member states.

"A few years ago there was little interest in the area, but we have seen some of the biggest rises in interest in the European Quarter," Intercontinental Brussels Properties spokesman Stavros Malaxos says.

His comments were echoed by Minako Shoubuike, of Eurohouse, which caters for a large international community.

Shoubuike says the "enormous" influx of people from the new EU states — including civil servants, lobbyists, parliamentary staff and journalists — has "undeniably" had an impact on the property market.

European Quarter as hotspot

Many of the homes under construction will be luxury apartments and Shoubuike says this could appeal to EU employees who are in a "privileged" position because of the generous salaries many of them command.

It means the rapidly rising cost of property in Brussels — and the average price of a two-bedroom property in the European Quarter will be nearly EUR 400,000 — is of little concern to them.

Malaxos points to the district's easy access to the city centre and Brussels International Airport as major advantages, as well as its proximity to the European institutions, including the Commission, Parliament and Council of Ministers.

The latter used to be a disadvantage, as many EU workers did not want to live near their office, preferring to bring up families outside the city.
 
Malaxos says this is still the case for some, but a growing number of younger expatriates prefer to be nearer the action — and get enough green space by walking through the nearby Cinquantenaire Park or taking weekend trips.

He also points out that the traditional city edge hot-spots for more well-off expats — communes such as Tervuren — are becoming a headache for commuters.

Types of housing on offer

Some of the properties under construction include serviced apartments.

"There is a growing market for these. We can feel the competition heating up," a spokesman for Brussels Business Flats (BBF) says.

Many of the people who have expressed an interest in the new properties work for international companies, the EU, NATO and embassies.

Some will offer an identical decor, modern furnishings and a practical service rather than a luxury residence.

Other developments, however, promise to offer residents a touch of luxury, including the use of fitness and beauty centres and saunas.

Other perks include car rental and advice on administrative matters such as registering with the authorities.

Who's going to live there?

UK expat Peter Harding moved to Brussels a few months ago to work in the European Commission and has put his name down for a rented property currently being built close to the European Parliament.

Harding, 28, says the two-bedroom, 5th-floor property will be "ideal" for work and means the "wearisome" long commute to work he is accustomed to in London will become a thing of the past.

Almost 1,000 houses are to be built on 11 building sites

"The area is close to everything I need, so I am looking forward to moving in," Harding, who is currently staying with friends, says.

He says the close proximity of good rail links — Gare Luxembourg which has connections to international routes and will be right on his doorstep — is another "plus".

Caroline Ridderbusch, a 34-year-old German, is another who has her sights set on a refurbished property near the Parliament.

"The building is currently being renovated, but I have seen the plans and it looks like it will be very tastefully done," she says.

"I must admit the price I am paying is a bit high for what it is — EUR 333,000 for a one-bedroom flat — but property prices in Brussels are still relatively modest compared with places like Paris and London."

Market turnaround

Several agents report that business has been picking up in the past year or so after suffering a slump in 2001-2, caused by a drop in multinational companies sending employees abroad after the 9/11 attacks.

"A few years ago, a lot of people did not want to live in a city centre location such as the European Quarter because of fears over their security and other factors such as street prostitution," senior manager at Victories Properties Thierry Kemp says.

"All that is starting to change though and one of the first things I am asked by clients is to find somewhere in the city centre, possibly close to the European institutions, for them to live.

"Public transport and the easy availability of city centre theatres, cinemas, restaurants and such like are strong selling points."

Agents say another important factor in turning the European Quarter into Brussels' latest property hot spot is over capacity in the office rental market.

Conservative estimates suggest that some 10 percent of offices in Brussels are currently unoccupied.

This has served to make developers turn their attention to building new homes.

Social housing

But if the housing boom is good news for developers and local restaurants etc, some fear it is not so great for the less-well-off.

It appears that few, if any, of the new properties will be earmarked for social housing or for those on modest incomes.

Brussels Housing Minister Francois Dupuis (Francophone Socialist PS) says that only a few years ago, building new housing on prime sites near the EU institutions would have been out of the question.

However, Dupuis also says she hopes to persuade the developers to try and attract people on average incomes to buy some of the new flats.

That is probably just as well as many older Belgians still wince at the not-too-distant memory of good quality property being razed to the ground in order to accommodate buildings housing the EU institutions.

"It is a bit ironic. They are building new properties in the same area where, a few years ago, they were demolishing them for the EU," a long-time resident in the area, Xavier Eugene, says.

17 May 2006

[Copyright Expatica 2006]

Subject: Brussels housing market, living in Belgium