Belgian real estate volumes tipped to hit EUR 2b in 2012

Belgium's long subdued real estate investment market is on target to realise a full-year volume of EUR 2 bn, a 33% increase compared to 2011.

Office investment is re-asserting itself after retail made a lot of the running in the second quarter. The largest transaction recorded by PropertyEU Research so far in the third quarter occured during the summer. Belgian insurance company Integrale and real estate fund OGEO bought the Gutenberg office and printing works building in Brussels for EUR 122 mln. Property consultancy Anixton acted for the vendor, Captiva Capital Management, in the sale of the 29,000 m² property.

And in September Wilma Project Development, the urban development department of the Matexi Group, purchased the Antwerp Tower at de Keyserlei in Antwerp for an estimated EUR 40 mln. The seller was a Dutch family which was advised by Jones Lang LaSalle.

Savills, another property adviser active in the Belgian market, expects other significant deals before the end of the year.

Gregory Martin, managing director at Savills Belgium, commented: 'Many transactions which have been delayed due to new tax measures should close during the second half of 2012 and into 2013 and we therefore expect investment levels in the office sector to see an increase in H2 compared to H1 2012. In the office segment many international investors adopted a wait-and-see attitude during H1 2012 despite Belgium releasing a sound set of macroeconomic data compared to some other European countries.'

The property adviser reported that Belgian commercial property market recorded total investment turnover in the 2012 first half of EUR 1.1 bn, representing 78% of the total volume achieved in 2011 (EUR 1.5 bn).

The real estate adviser predicts that total turnover for 2012 will reach approximately EUR 2 bn, which is an increase of 33% on the figure achieved last year.

At EUR 533 mln, the Q2 total investment volume in Belgium was up 37% compared to the same period in 2011 with retail remaining the market driver, accounting for 35% of turnover. The office sector saw an increased level of activity in Q2, making up 34% of total investment volume, from 32% in the previous quarter.

Private investors accounted for the bulk of turnover, at 27%, followed by Belgian REITs (16%) and institutional investors (15%). Domestic players dominated the market, making up 55% of transactions, a trend that Savills anticipates will continue.