Increased investor demand for offices in Brussels pushed volumes in the sector to €1.3 bn last year, up 48% on the previous year, Jones Lang LaSalle said in its latest report on the Belgian market.

Increased investor demand for offices in Brussels pushed volumes in the sector to €1.3 bn last year, up 48% on the previous year, Jones Lang LaSalle said in its latest report on the Belgian market.

The office sector was the major driver behind the increase in overall transaction volumes in Belgium, which came to €2.3 bn in 2013, 5% above the volume for the previous year and well above the five-year average of €1.9 mln.

By contrast, investment in industrial and logistics property was stable at €200 mln, while retail property volumes were down 14% at €646 mln and investment in retirement homes slumped to €120 mln, down 60% on the 2012 figure.

Brussels offices feature in five of the top 10 real estate transactions in Belgium last year. By far the largest was the acquisition of the 11-storey Belair office project in downtown Brussels for €300 mln. The 80,000 m2 asset was acquired by German fund manager Hanover Leasing and an unnamed Asian fund.

The second-largest transaction saw the insurance arm of Belfius Banking and Insurance (formerly Dexia) acquire a 60% share of an office complex in the northern district of Brussels by forming a partnership with AG Real Estate, the property arm of AG (formerly Fortis), Belgium's largest insurance company. The purpose of the partnership is to invest in and develop the new office complex where GDF-Suez will be setting up its Belgian headquarters. Belfius Insurance's total investment is valued at roughly €163 mln.

An Excel sheet of JLL's list of the Top 10 Belgian real estate deals of 2013 is available here and via the link below.

The surge of activity in the office sector helped push down prime yields in Brussels' central business district locations. Yields in the European district dropped to 5.85%, the lowest level in five years.

The vacancy rate in Brussels stood at 10.1%, down slightly on 2012, with the CBD recording vacancy levels of 5.6%. Prime office rents remained stable in Brussels and Antwerp at €285/m2/year.

For more on Brussels and the Belgian market, watch JLL's online presentation on YouTube.

Brussels is one of the major European cities included in PropertyEU's Top Investors and Locations report published in March 2013.