Commercial property in Belgium in 2005 returned investors 6.6%, IPD showed in its first consultative release for the country.
The Office sector, representing 80% of the databank value, returned 6.2%. Income return (6%) is consistent with the region whereas capital growth is limited (0.2%). Different situations can be observed in the Brussels market, with total return decreasing as we move away from the city centre. For instance, Brussels CBD return is 8.9% whereas the figure for Brussels periphery is 2.5%, reflected by the deterioration of vacancy rates. The figures for capital growth are negative in Brussels decentralized (-2.9%) and periphery (-3.5%). IPD also shows the measurement of irrecoverable costs that rank between France and Netherlands. The best performing sector was Industrial with a total return of 13.1%, followed by Retails at 7.6%.
"The launch of such an index in Belgium completes IPD's European coverage. It meets Belgian and international players' expectations regarding analysis tools for real estate investment and contributes to a greater transparency" says Stéphanie Galiègue, Manager Director of IPD in Belgium.
Source: IPD Belgium