Brussels Buyers Flee to Wallonia: The Impact of Tax Cuts and Rising Prices on the Real Estate Market

Why Are Buyers Leaving Brussels to Settle in Wallonia? And How Can a Tax Reduction Drive Up Prices?
The real estate market in Brussels is showing signs of stagnation. According to major real estate networks, transactions in the capital have dropped by 10% since the start of the year. The culprit? Registration fees remain at 12.5%, while Wallonia has reduced them to 3% and Flanders to 2%. Additionally, the lack of a regional government for nearly a year after the elections is creating an atmosphere of uncertainty. Meanwhile, in Wallonia, things are buzzing: sales have increased by 12% in the first four months of 2025.
Wallonia: A Recovery on the Verge of Overheating
In Wallonia, there is a palpable sense of excitement, with sales rising by 12% in the first four months of 2025. However, this region is starting to show signs of overheating. In fact, the average price of a house surged by 17.8% in the first quarter. Thus, the tax reduction appears to have been absorbed—or even overshadowed—by the rise in prices. Consequently, while the tax burden is lighter, the cost of acquisition has grown significantly. In the end, the total cost is proving to be higher than before.
Some observers view this situation as unfavorable for the middle class, as sellers thrive while young people struggle to enter the property market. On the other hand, the Walloon government, which initiated the reduction in registration fees, is trying to calm concerns.
What does this situation reveal? A simple reality: the real estate market is unpredictable, responding not only to fiscal adjustments but also to politics, anxiety, and inaction. In Brussels, a climate of waiting prevails, whereas in Wallonia, opportunists—often the wealthiest—capitalize on the situation. Tax reforms shift imbalances without necessarily correcting them. Most importantly, they underscore a fundamental truth: acquiring property requires more than just a tax break. It needs direction, a clear policy, and a minimum level of confidence in the future. Unfortunately, in Brussels, the crisis is not solely about real estate; it is fundamentally a crisis of trust.