A survey conducted by JLL with Belgian and foreign investors
⁃ Investors believe that investment volumes in 2017 will be similar to those of 2016.
⁃ Prices in 2016 were comparable to the asking price in more than half of the transactions, whilst one third closed at a higher price.⁃ Investors remain risk-adverse and focus on core and core+ properties.
⁃ Demand for office properties and logistics is expected to be the strongest in 2017.
⁃ 40% of the respondents expect prime office rents to rise in 2017. Nearly 60% of the respondents expect retail rents to remain stable, one quarter expects a rent decrease.⁃ Stable prime yields are predicted in all segments; for offices and logistics a further compression is anticipated by one quarter of respondents.
⁃ Investors, both international and Belgian, continue to believe in the opportunities of the mature investment market in Belgium. ⁃ More than half of the respondents believe that the property market in 2017 will be as attractive for buyers as it was in 2016.⁃ 83% believe that selling property will be as attractive, or even more attractive, as in 2016.
⁃ In 2016, in 51% of the cases, prices were comparable to the asking price, whilst 36% closed at a higher price.⁃ In 2017 loan-to-values are expected to stay the same, whilst investors will remain broadly risk-averse.⁃ A vast majority of respondents (84%) confirm their main interest is in core and core+ properties.
⁃ Demand for office properties and logistics is expected to be the strongest in 2017.⁃ Investor demand is expected to concentrate on the Brussels Region, followed by the main regional cities. ⁃ Occupier demand is forecasted to remain stable or to increase for offices, whilst demand for retail property is expected to remain stable or to decrease in 2017.
OFFICES⁃ 40% of the respondents expect office rents to rise whilst 45% expect prime office rents to remain stable in 2017. 64% of the respondents expect the prime yield for offices to stabilise, whilst one quarter thinks it will compress.
RETAIL⁃ 58% of the respondents expect retail rents to stabilise whilst 24% expect rents to decrease. Two thirds of the participants believe that prime yields for retail will stabilise in 2017, whilst 19% think that they will increase.LOGISTICS⁃ Half of the participants believe that the prime yields for logistics will remain stable, 27% expect yield compression.