Though many saw the pandemic as a premise to escape to the countryside, cities (especially city centres) still appeal to many, a study by ING banks suggests. The study looked into the impact that the pandemic had on the real estate market.
The pandemic gave many Belgians an appetite for larger houses and easier access to nature. With the mandatory introduction of teleworking, many discovered the benefits of extra space and calm that is elusive in large urban centres. The researchers set out to see if this newfound popularity for suburban or even country life would diminish the appeal of cities.
Homes further away from the city centre are usually less expensive. And as working from home became normalised, the researchers considered whether people would attach less importance to living near the centre of a city.
Location, location, location
ING compared property prices in six Belgian cities before and after the pandemic. It seems that although Belgians value space more than before, the importance of location is still a huge factor in the real estate market.
In fact, the study suggested that because Belgians consider their homes more important than before the pandemic, housing prices have risen.
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Throughout the pandemic, property prices in all regions rose sharply such that the average price for a house or an apartment is now higher than it was two years ago. The prices of more expensive houses have increased more than cheaper houses.
In simple market terms, it appears that Belgians are willing to pay more for something that has become more valuable to them. ING believes that real estate prices will keep rising in 2022, with a 5.4% increase unless the war in Ukraine drags on.
