Brussels Is Sprouting
The Irish Mail on Sunday, 23rd September 2007Belgium is normally synonymous with "boring" - but not anymore. The EU’s bureaucratic heart has been the scene of extraordinary political turmoil for the past three months.
Since the national elections of June 10, politicians have been squabbling and unable to form a government. There is growing talk of splitting the country in two to resolve the tension between francophone Walloons and the Dutch speaking Flemish.
A bad time for investors? Actually no, because the property market in Brussels is now even frothier than the beer. Despite the political turmoil, it’s business as usual - the markets remain healthy and the economy is in solid shape. So there’s plenty more than the city’s celebrated chocolate to attract investors.
Brussels is home of the European Parliament, the capital of Flanders (the northern part of Belgium) and of Belgium itself, and boasts plenty of new homes under construction in and around the centre.
Local agent Marc Boutefeu from Immo References believes it is a good time to put your money into this cosmopolitan, bilingual city, with areas such as the Ixelles quarter, close to the European Parliament, being regenerated.
There was activity when Eurocrats came to live in Brussels when the bulk of the parliament buildings went up in the 1960s and 1970s, but the market slowed after that.
"Prices have risen by ten to fifteen per cent over the past five years with people starting to invest in the city again," Boutefeu says, "and I think they will go up another five per cent this year".
Thornsett Group, an Irish owned developer, has three schemes for sale in Brussels to suit the needs of different owner-occupiers and investors.
Leopold Village in Leopold (the European Commission district) has 108 studios and one to four bedroom apartments spread over three blocks, a Starwood hotel and commercial space including a ground and first floor restaurant with huge terraces overlooking Place Jean Rey and an adjacent park.
"You are right next to the European Commission headquarters and prices are lower than people expect in Brussels, ranging from €140,000 for a studio to €320,000 for a three bed apartment. The nine penthouses start at around 1m euros says Eoghan Quinn, from Thornsett’s new Brussels office.
He adds that the Leopold homes are very contemporary with plenty of choice - 14 different doors for kitchen units in 53 different colours, for instance - quite unusual for new projects in the city.
Interior Designer Deirdre Danaher is buying a third floor two bedroom two bathroom flat for €312,000 at Boniface Square, Thornsett second development in Brussels. Tucked away in young multicultural Ixelles, one of the city’s liveliest spots, Danaher’s flat in one of 28 apartments opposite an old church on Place St Boniface, where prices range from €225,000 to €700,000.
"I’ve been looking to invest in property for some time now," says Danaher, 52, from Blackrock, Co. Dublin "Prices are too high in Dublin right now - I can’t see the value in it that justifies the cost."
A French speaker, Danaher is impressed by the city’s cleanliness and good quality of life. "I know it’s not the most exciting spot, but there is a lot to be said for somewhere that is secure and stable."
Part of Danaher’s layout for her property includes €25,000 for a parking space in the basement at €2,500 stamp duty at 12.5pc of the land cost and 21pc VAT on construction costs.
"The apartment, with a good-sized 80 sq ft balcony, is only a 10 minute walk from the main shopping drag of Place Louise and it is close to the European Commission," she adds.
Danaher plans to let out her apartment which she reckons will fetch about €1,200 a month in rent. She intends to rent for about a decade and then probably sell on.
Thornsett is also building 16 two and three bed apartments from just over €420,000 in the quiet residential area of Woluwe St Pierre district, about 10 minutes from the city centre. "There is a park across the road and good shops round the corner," says Quinn.
And Boutefau tips Laeken and Jette, only six Metro stops away from the heart of Brussels, where two-bed homes cost around €160,000 to €182,000.