Follwing a string of major deals in Belgium, another €1 bn of real estate assets are on the market, according to real estate adviser Savills.

Follwing a string of major deals in Belgium, another €1 bn of real estate assets are on the market, according to real estate adviser Savills.

As a result, the adviser is forecasting that the full-year volume for 2014 will exceed €2 bn, based partly on two large deals and a promising acquisitions pipeline.

In May, Danish pension fund ATP and AXA Real Estate bought the North Galaxy office complex in Brussels for €475 mln. Around the same time, the real estate arm of Belgian insurer AG acquired the Kievitplein mixed-use scheme in Antwerp for almost €200 mln.

Gregory Martin, managing director of Savills Belgium, said: 'Whilst transaction volumes were down by 38% in Q1 2014 year-on-year, we do expect a stronger pick up for the remainder of the year as two large deals have already closed in May and several transactions that are currently in the pipeline should happen in the next few months.'

Savills research finds that private and institutional investors remain the most active in Brussels, at 29% and 27% of total turnover respectively. Domestic investors were involved in half of all deals, with German, US, UK and French buyers all active in Q1 2014 as well.

Savills reports that prime office yields, which stand at 6% compared to 6.25% a year ago, could contract further as demand outstrips supply in the coming months.

Jeremy Lecomte, head of research at Savills Belgium, said: 'With market activity gradually accelerating we should see economic growth of approximately 1.3% in 2014, although this is dependent on several factors including the upcoming May election. This improved economic outlook will translate to the investment market if it is also coupled with increased occupier demand.'

The research fnds that vacancy stands at 9.5% in Brussels and should keep falling in central districts due to a low completion level and conversion of obsolete office buildings into residential. As demand is mainly focused on new space, the quality of vacant offices may continue to deteriorate.