This article will discuss the trends in the Belgian small warehouse rental market. The article will also discuss the effect of VAT on rents. Whether you are looking for a space for your small business, or you need extra storage space for your growing inventory, this article is for you. Listed below are the top five factors to consider when looking for a small warehouse rental in Belgium. Let’s get started! 1.1 What is the Average Rent for a Small Warehouse in Belgium?
Market analysis of Belgium’s small warehouse rental
The Belgian logistics market is booming, with 600,000 square meters of new space scheduled to be added this year. Warehouses in the country are getting bigger, smarter, and more varied, and the high demand is making rents increase for the first time in years. The average headline rent for a warehouse in Brussels is currently 45 euros per square meter, compared to 43 euros in 2018 and 41 euros in 2017. Prime rents are expected to reach 55 euros per square meter in Brussels.
The growth in the logistics sector in the last few years has been boosted by a number of global and local factors. In Europe, the shrinking working-age population is contributing to a compressed labour market. As the number of working-age workers declines, Belgium is experiencing a loss of large warehouses. In addition, the Netherlands has better regulation of night work, which has led to increased competition in this sector.
As the population continues to age, the number of new buildings in the logistic market has grown, and the number of new units will continue to increase. This trend is expected to continue for the next few years, according to Didier De Vliegher, president of CEUSTERS Real Estate, one of Belgium’s biggest brokerages. Despite this, the number of residential units is expected to increase by 4.4% in 2020.
Trends in rents
Belgian commercial real estate is growing in popularity among investors, and the Belgian market is no exception. The country has a stable economy with low vacancy, while the country’s price per square meter is comparatively low to its more expensive neighbours. It is also relatively cheap compared to other European countries, and occupiers are benefiting from the lack of supply in comparison to demand. In fact, the rents in Belgium are currently stable, although a few factors can explain why the rents in this country are higher than in other regions.
The Belgian market is experiencing strong demand for logistics space. However, the country is also facing a supply-demand imbalance, and new construction is limited. During the second half of this year, supply will eventually balance and demand will fall. That will lead to a slowdown in industrial property construction and rent growth. However, this trend is unlikely to last much longer. Small warehouses are an important part of the Belgian industrial estate market, and they are expected to remain so for the foreseeable future.
Belgian real estate markets are relatively stable, despite the recent global economic crisis. As a result, Belgium’s real estate market escaped the sharp price declines that affected many other countries. According to Didier De Vliegher, a real estate agent, Belgium’s real estate market will remain relatively stable through 2014 and 2015, with rental prices expected to increase by 1 to 1.5 per cent annually. This is significantly higher than the indexation provided by Belgian law.
Impact of VAT on rents
The new Belgian VAT law, which will take effect on 1 October 2018, will affect immovable rent, as well as some other types of rentals. This change presents a valuable alternative to exploitation of real estate in Belgium. The purpose of the new VAT regime is to give landlords greater flexibility in the way they use their real estate investments. The increased VAT burden may discourage landlords from offering small warehouses for rent.
A recent FAQ published by the Belgian tax authorities clarifies the impact of the Corona virus on cross-border employment. According to the FAQ, home working days due to the pandemic are not disregarded for employees resident in Belgium. Belgian employees working abroad, however, do not benefit from these provisions. However, companies in a state of structural financial distress cannot take advantage of these measures. Fortunately, the Belgian government has taken a proactive approach to alleviate these costs.
In addition, the new VAT law reduces the interest on late VAT debts. This means that late VAT payments will now only incur interest of 4% a year instead of 9,6%. Furthermore, the reimbursable interest will be reduced to zero by the second quarter of 2021, meaning that small warehouse rents will remain the same. Further, the changes will improve the business environment for entrepreneurs in Belgium, as a result of increased competition.