Belgian commercial real estate reaches record investment volume of €8.56 billion in 2022

According to figures released today by real estate consultant CBRE, the total investment volume in commercial real estate in Belgium has reached a record high of 8.56 billion euros in 2022. The Brussels office market alone accounts for 54% of the total volume, or €4.65 billion. This investment record shows that the Belgian market and its fundamentals are still attractive to both Belgian and international investors.

In terms of large transactions, we can mention the acquisition of BE REIT Befimmo by Brookfield Asset Management, but also the sale of some large Brussels office buildings, such as the Egmont I&II buildings to UBP and the North Galaxy towers to KB Securities.

The other real estate sectors also had a good year in 2022. Industrial and residential assets remain attractive due to their long-term fundamentals, and the retail market has also seen growth in transaction volumes for the first time since the Covid-19 pandemic.

Arnaud Smeets, Senior Director & Head of Capital Markets BeLux at CBRE, comments: "Rising inflation and interest rates have created an uncertain short-term outlook and cast a shadow over a positive 2022. However, it should be remembered that properties based on indexed leases traditionally offer protection against inflation and market fundamentals are strong in the long term.” 

Despite a volatile period, the Belgian market has shown resilience and stability and should continue to do so. However, Arnaud Smeets remains cautious: "Many investors remain well capitalised, but financing and hedging costs and an uncertain outlook have resulted in higher property yields. For offices, yields on standard leases are estimated at 4.15%, while yields on long-term leases are estimated at 3.80%." 

Involved in approximately 60% of the investment volume in 2022, CBRE has seen its market share almost double compared to previous years. A very positive note that closes a record year.