Climate Impact on Belgian Real Estate

Climate: the new determining factor in property value

Climate change is no longer a distant concern for the Belgian real estate market. The catastrophic floods of July 2021 in the Vesdre valley, which caused over 40 deaths and 3 billion euros in damage, brutally reminded us of the vulnerability of Belgian housing stock to extreme weather events.

Since then, buyers, investors and banks increasingly integrate climate risks into their decisions. This trend, called "real estate greenflation", creates new winners and losers in the market.

Major climate risks for Belgian real estate

Flooding: the number one risk

Belgium is one of the most flood-exposed European countries. According to data from the Federal Interior Ministry and the CatNat platform:

• 20% of Belgian territory is in flood-prone areas
• The provinces of Liege, Namur and Luxembourg are most vulnerable
• The frequency of extreme events has doubled in 30 years
• Average damage per affected dwelling is 15,000 to 50,000 EUR

Walloon municipalities like Pepinster, Chaudfontaine and Trooz saw their property prices drop 10 to 25% after the 2021 floods.

Heat waves and urban heat islands

Summer temperatures in Belgium have risen by 2°C on average since 1990. Major cities, Brussels, Antwerp, Liege, are particularly affected by the urban heat island effect.

Drought and soil instability

Increasing drought periods cause clay shrink-swell problems, particularly in Walloon Brabant, Hainaut and certain Flemish zones.

The EPC urgency: accelerated energy transition

The link between climate and EPC has become central to Belgian property policy. Energy-guzzling properties (EPC E, F, G) face increasing discounts:

• In Flanders, the price gap between EPC A and EPC F reaches 15 to 20%
• In Brussels, PEB F/G properties sell 10 to 15% cheaper
• In Wallonia, the gap is smaller (5 to 10%) but growing rapidly

Renovation obligations in Flanders and the Renolution plan in Brussels accelerate this trend. Check our Eco-Score simulator to estimate improvement costs.

Price impact by region

Flanders: premium for energy efficiency

Flanders is where climate impact on prices is most visible. The reduced registration duty of 1% for EPC A/B properties creates a strong incentive.

Brussels: mounting regulatory pressure

The Renolution plan and rent indexation freeze for PEB E/F/G properties create unprecedented pressure on owners of energy-inefficient properties.

Wallonia: gradual awakening

Wallonia lags behind in energy legislation, but the 2021 floods triggered major awareness. Flood-mapped zones see stagnating prices.

Adaptation strategies for buyers

• Check flood maps before buying
• Verify the EPC certificate and estimate renovation costs via our Eco-Score tool
• Prefer properties with good EPC (A, B, C)
• Integrate renovation costs into total purchase budget

Check our price data per municipality and our EPC analysis for informed decisions.

FAQ

Do properties in flood zones lose value?

Yes. After the 2021 floods, properties in risk zones in Wallonia lost 10 to 25% of their value.

Should you avoid EPC E, F or G properties?

Not necessarily, but integrate renovation costs into the purchase price. An EPC F property bought with a 15-20% discount and renovated to EPC C can be an excellent investment.

Does climate change affect mortgage rates?

Not directly yet, but some Belgian banks already offer preferential rates for EPC A or B properties (0.1 to 0.3% reduction).