Real estate prices will continue to rise, by 5% in 2022 and another 1% the following year, according to a study by ING published on Monday. A rate however slower than inflation, notes the bank.
However, it appears from the barometer of notaries that activity on the market has cooled recently. In the first five months of 2022, the number of queries on the three largest real estate search sites was, on average, 15% lower than last year. However, in the first quarter of 2022, property prices increased by 7.8% compared to the same period last year, notes ING.
“Demand remains high”, explains economist Wouter Thierie. “The number of households will continue to increase in the coming years. In addition, real disposable income is holding up well thanks to strong employment growth and automatic wage indexation, which will support the growth in household prices. On the other hand, the sharp rise in rates observed since the beginning of the year is making mortgages more expensive. In addition, the war in Ukraine and high inflation are creating uncertainty which may cause home buyers to postpone their purchase decision.
In addition, more than a quarter (28%) of owners and more than half of tenants believe that their home is energy-intensive, also emerges from the ING study.
In this area, there is a real difference between landlords and tenants, notes the bank. Four out of five owners (80%) have double glazing, while just over half (55%) of tenants do. Twenty-six percent of owners have solar panels, compared to 5% for renters. Forty-two percent of owners have already invested in energy-efficient appliances, compared to 19% of renters. The concern is real, mainly among the youngest, but it is still necessary to have the means to make adjustments. Among respondents whose net household income is less than 3,000 euros, 38% live in low energy efficiency housing, compared to “only” 26% of those with a higher income. The intention to improve the energy efficiency of a property is also lower among people with modest incomes, underlines ING.