Investors to up allocation to Belgium: Savills

Domestic and international investors are set to increase their allocations to Belgian real estate. according to property adviser Savills.

In the latest Belgium market report published at MIPIM, Savills said demand for well-let, prime assets is expected to continue to increase in 2013 as prime yields remain attractive at 5.75% for shopping centres and 5.35% for long-leased office buildings.

In addition, the adviser notes that the Belgian investment market recorded a 38% increase in 2012 compared to 2011 with a total volume of €2.01 bn.

Gregory Martin, managing director of Savills Belgium, commented: 'We expect investors to increase their allocation towards Belgium as yields are still attractive when compared with those observed in other markets. During 2012, we saw a particular increase in exposure to the retail and residential markets where volumes more than doubled.'

While the Belgian investment market is dominated by local purchasers accounting for 71% of all investors, it emphasised that UK and German investors were also active. In fact, the largest investment deal in Belgium during 2012 was the purchase by Abu Dhabi Investment Authority of the Zuiderpoort office building in Ghent for €110 mln.

The full Savills report and PropertyEU's Focus on Belgium are linked below.