New construction as an investment: still interesting in 2025?
The new construction market has taken a solid hit in recent years. High interest rates, rising construction costs and fewer tax breaks kept many investors on the sidelines. Yet there is movement in the market again, and for those who invest smartly, there are still great opportunities.
Until a few years ago, private investors accounted for about 40 percent of new construction sales. Today they have largely disappeared, mainly due to increased interest rates and higher entry costs. But in the meantime, prices are stabilizing, rents are rising and the demand for energy-efficient homes remains strong.
A standard new construction apartment in Flanders now costs an average of 324,000 euros excluding VAT. That is virtually the same as the price in the previous quarter. That means: the price peak seems to have been reached, but large drops are not expected. At the same time, there are fewer building permits and scarcity is emerging on the market.
Rents, on the other hand, continue to rise. In 2024, they went up an average of 6%, while inflation was only 3.3%. That makes for a net return around 3%, and that's without the capital gains you can realize over time.
What does this mean for you as an investor? Invest in projects that are move-in-ready or deliver quickly, in good locations with high rental demand. Consider energy efficiency, low-maintenance materials and a clear target market. This way you maximize your chances of return and added value in the long term.
Wondering where your best opportunities lie? At Kasper & Kent we are happy to guide you with tailored advice.