New-Build Property in Brussels: Protecting and Growing Your Wealth Against Inflation

When an investment generates a return of 2.5%, this does not necessarily mean that the investor's wealth has increased by 2.5% in real terms.

Inflation must also be taken into account. By way of illustration, a nominal return of 2.5% against inflation of 3.6% represents an approximate real return of -1.1 percentage points, before taxes and other costs.

Belgian government bonds provide a useful illustration of this distinction. Some bonds issued in recent years offered fixed coupons, such as the three-year Belgian government bond issued in 2023 with a 2.50% coupon. However, a fixed return does not automatically adjust to changes in inflation.

Real estate works differently: it can combine rental income with the potential appreciation of the property.

One of the key advantages of rental property is the possibility for rental income to evolve over time.

In Belgium, rent indexation is regulated by law and is based, among other factors, on the health index. The Federal Planning Bureau also highlights the role of this index in rent indexation.

This means that, under certain legal conditions, a property investment can benefit from rental income that evolves in line with the general price level. The objective is therefore not only to generate income today, but also to help preserve the purchasing power of that income over the long term.

Brussels continues to hold a distinctive position within the Belgian property market thanks to its status as the capital of Europe, the presence of numerous international institutions and its diverse, international population.

In this context, the quality of the property, its location, energy performance and rental potential are key criteria for a sustainable investment.

For investors, choosing a modern, well-located new-build property can help strengthen the property's appeal on the rental market and its long-term potential.

Investing in a new-build apartment offers several characteristics that may appeal to investors looking for a long-term property investment. 

Recent new-build developments meet increasingly demanding energy standards. Improved energy efficiency can help reduce energy consumption while making a property more attractive to potential tenants. 

A new-build apartment generally benefits from recent installations and modern equipment. This can reduce the likelihood of significant renovation works being required in the short term. Maintenance and homeowners' association costs, however, should still be taken into account. 

Certain areas of Brussels benefit from sustained rental demand thanks to their proximity to public transport, international institutions, business districts, shops and green spaces.

For investors, location therefore remains a decisive factor. A well-located apartment that meets tenants' expectations can contribute to stable occupancy and regular rental income.

Unlike a purely financial investment, real estate is a tangible asset: an apartment that can be rented out, occupied or passed on in the future.

A property investment can therefore combine several potential benefits:

• rental income;
• potential capital appreciation;
• rent indexation, where the relevant legal conditions are met;
• the gradual accumulation of property assets;
• diversification within a broader wealth strategy.

These factors should, however, be considered from a long-term perspective. Real estate does not offer a guaranteed return. Its profitability depends on factors including the purchase price, financing, taxation, costs, vacancy and the evolution of the property market.

In an environment where inflation can erode the real return of fixed-income investments, new-build residential property can have a place within a diversified wealth strategy.

Investing in a new-build development in Brussels makes it possible to combine a tangible asset with the potential for rental income, while benefiting from the characteristics of contemporary buildings: energy efficiency, comfort, modern amenities and carefully considered locations.

With this vision in mind, Urbicoon develops property projects designed to meet the changing needs of residents and investors: contemporary homes that are carefully designed and intended to retain their appeal over time.

The aim is not simply to pursue an immediate return, but to choose a well-considered property investment that fits into a long-term approach to wealth creation.