Figures
Brussels Office MarketView Q4 2024
Interest rate cuts in the last quarter of 2024 spark investment revival
January 28, 2025 6 Minute Read
Looking for a PDF of this content?
Take-up
The Brussels office market experienced a strong fourth quarter in 2024, with 96,325 m² of take-up, bringing the year's total to 342,606 m². This surpasses the previous two years and aligns with the five-year average. Public sector transactions accounted for over a third of the activity, reflecting the stabilizing dynamic of the Belgian and European sector on the office market. In 2024, there were 358 transactions, including a revival of the coworking sector with six deals after a year of inactivity.
Vacancy
Vacant office space increased slightly to 7.8% of total stock in the Brussels market in Q4. This is equivalent to 970,000 m² including 130,700 m² of grade A vacancies. Vacancy in grade A increased on the back of recently finished projects that are not yet fully commercialised. Also, Grade B and grade C vacancy increased to the previous quarter, eventually resulting in a higher vacancy rate.
Conversion
In Q4 2024, developers marked some 14,900 m² of office space for conversion into alternative uses, mostly into residential. This brings the year total to 123,335 m², which is considerable compared to the previous three years.
Development
In Q4, office development was limited, as some projects were delayed. Still, development activity was considerable this year with close to 200,000 m² of office space being put on the market. Less than a fifth of this volume is still available for letting. Especially CBD projects are getting occupied rapidly after completion.
In 2025, we expect another 170,000 m² of office space to be completed, of which 57% is already secured by occupiers. In 2026, there is 205,000 m² of identified projects that are in the pipeline, with 29% already secured.
Rents
Throughout 2024, rents for quality office space have been under upward pressure given the scarcity of supply, level of demand and overall inflation including construction costs. As a result, the general prime rent for the Brussels office market has risen form €310/m²/year to €400/m²/year in 2024, a 29% increase. This is in line with many European cities that have experienced rising top rents over the past two years.
Investment
On the back of lowering interest rates, Brussels offices noted a surge in investment volume this quarter, totalling €226 million worth of office deals. This welcomed surge in the investment market indicates that the worst period is behind us when it comes to investment activity and has brought the 2024 total for Belgium to €3.90 billion.
