Increase of housing prices in Belgium is slowing down
Belgian STATBEL published housing price index in Belgium for the 2nd quarter 2022.
The annual inflation rate observed for house prices stood at 5.9% in the second quarter of 2022 compared to 6.5% in the previous quarter. The average inflation rate for the last 4 quarters reached 6.7%.
The housing price index increases by 1.3% in the second quarter of 2022 compared to the previous quarter. STATBEL, the Belgian statistics office, calculates a housing price index every quarter in accordance with European regulations.
In the second quarter of 2022, the annual inflation rate for house prices stood at 5.9% compared to 6.5% in the previous quarter. The average inflation rate for the last four quarters reached 6.7%. The housing price index stands at 133.18 points (2015=100) against 131.47 points in the previous quarter and thus increases by 1.3% compared to the first quarter of 2022.
The housing price index is calculated by the member countries of the European Union according to a harmonized methodology and therefore makes it possible to compare the evolution of property prices between the different European countries. The housing price index measures changes in the prices of private real estate. This index tracks changes in the prices of new or existing residential properties purchased by households, regardless of the purpose (rental or personal occupation). The house price index measures the change in prices assuming that the characteristics of the goods sold remain unchanged.
The index therefore measures the pure price change without interference from qualitative changes. Thus, if the size of properties sold increases, we can see an increase in the average price of homes sold, which does not necessarily mean that the house price index has increased. This index therefore does not measure the evolution of the average sale price of real estate.
The housing price index is based on real estate transaction data from the General Administration of Patrimonial Documentation of the FPS Finances. The results of the last quarters are considered provisional and may be reviewed during the following quarter following the availability of additional data.
The housing price index can be broken down into two items (new dwellings and existing dwellings). In the second quarter of 2022, annual inflation stands at 7.0% for new housing and 5.5% for existing housing. The weights of these 2 items in the overall index amount respectively to 23.9% and 76.1% for the year 2022.
Comparison between Belgium and neighboring countries
Since the house price indices of the neighboring countries for the second quarter of 2022 will only be published by Eurostat on October 7, 2022, the first quarter of 2022 is the most recent for which we can make a comparison. In Belgium, inflation stood at 6.5% in the first quarter of 2022 against 6.0% in the fourth quarter of 2021. The Netherlands recorded inflation of 19.5% in the first quarter of 2022 against 18.8% during the fourth quarter of 2021. In France, inflation stood at 7.1%, a slight increase compared to the rate of 6.9% observed during the fourth quarter of 2021. For Germany, the inflation rate stands at 12.0% during the first quarter of 2022 and is thus slightly down from the 12.2% rate observed during the previous quarter. Inflation for the euro zone as a whole increased from 10.1% to 10.5%.
Source: Belgian STATBEL