The Brussels office market is attracting investors with high occupancy rates and increasing rents, according to the latest King Sturge report on the Belgian capital’s office property sector. The office sector accounted for 59% of all Belgian property investments, with Brussels alone garnering 40% of investments in the country’s real estate sector. Investments in Belgian real estate more than doubled last year to EUR 4.3 bn.
The Brussels office market is attracting investors with high occupancy rates and increasing rents, according to the latest King Sturge report on the Belgian capital’s office property sector. The office sector accounted for 59% of all Belgian property investments, with Brussels alone garnering 40% of investments in the country’s real estate sector. Investments in Belgian real estate more than doubled last year to EUR 4.3 bn.
The overall vacancy rate dropped to 9.7% in 2006, the first time it has dropped below 10% since 2003. The public sector is still driving demand, accounting for 40% of total take-up last year, as low vacancy rates and healthy occupier demand put upward pressure on rents.
Aggressive competition between investors, with demand exceeding supply, led to a tightening of prime office investment yields to 5.75% by the year-end.