The prices of building materials are rising and mortgage rates are rising again. Two elements that are likely to influence the construction and real estate market. According to a survey carried out on the occasion of the opening of Batibouw, more than 80% of Belgians believe that buying a home is currently too expensive. QR l’actu takes stock of the brick sector with Niko Demeester, Managing Director of the Walloon Construction Confederation and Renaud Grégoire, spokesperson for notaire.be
Time to buy?
Buying or building is always a very good investment according to Niko Demeester. “The savings account no longer brings in anything, inflation is galloping on the other hand, mortgage loans remain quite low. If you have funds and a project in mind, I think you should not hesitate
Buying for housing is always a good time, even if it’s difficult for some, explains Renaud Grégoire. “The market will probably weaken a little in the coming months, but prices could very well increase as well and the credits will also be less interesting. So I advise young people to get into the market.”
But for young people there remains the question of the capital required by the banks. The notaire.be spokesperson also recognizes that the situation is a little more delicate for young people than before. “Banks demand a part in equity for the financing of a project. It is in fact the National Bank which imposes this rule because it has fears concerning a possible real estate bubble. Indeed, no more question for a bank of lend 115 or even 120% of a real estate project. For young people without equity, it is very complicated. In Brussels, we have understood the problem, which is why the registration fees are practically nil up to a certain amount”.
Build, buy or renovate?
The Belgian keeps a brick in his stomach more than ever. According to a study by the construction confederation, more than 80% of Belgians aspire to become homeowners. The advantage of new is obviously a much better insulated property but the prices remain high. Renovation is also interesting, especially as land is scarce. And you can go beyond simple renovation. You can destroy and rebuild. You will have the advantage of a perfectly insulated property and you will only have 6% VAT, explains Renaud Grégoire.
Material prices
The surge in material prices started with the covid crisis. And this escalation in prices continues with the conflict in Ukraine explains the managing director of the construction confederation: “We have observed, all materials combined, an increase of 50 to 60% on average over a period of one year. enormous. And the outlook is not very optimistic. The tension and the shortage in the materials market are enormous. The pressure on prices will certainly continue for at least several more months”.
These price increases will undoubtedly slow down the real estate market, but this is not necessarily a bad thing, according to the spokesperson for notaire.be: “It is becoming very difficult to enter the market. Real estate prices heated up in particular last year with prospective buyers who sometimes had to position themselves in 15 minutes otherwise they risked losing the property. In short, that the market is calming down somewhat seems to me a good thing”.
What do you give primes?
From many bonuses exist in the Walloon Region explains Niko Demeester. “Roof, chassis, floor, financial aid is numerous and regardless of the technique. What will count is the benefit in terms of energy saving. The more kilowatts you save, the more bonuses you will receive. All this can be calculated during the energy audit”.