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House prices set to fall for first time in 40 years

High street bank and mortgage lender KBC is forecasting that Belgian house prices will fall for the first time in four decades as a result of the corona crisis.  The bank stresses it’s difficult to determine how big the fall will be, but is taking account of a 3% drop this year and a further 2% fall next year. 

“If the lockdown measures are extended or reintroduced prices could drop more, up to 10%” says KBC’s real estate expert Van Gompel.

“The lockdown is hitting householders’ income.  Lower income will have an impact on the demand for real estate: people are worried about losing their jobs and that reduces the inclination to purchase real estate.”