Savills IM’s Research & Strategy Flash Note on Brussels offices highlights the city’s central business district (CBD) office market as an attractive investment opportunity.
While Brussels CBD offices lagged behind after the global financial crisis and Eurozone sovereign debt crisis, CBD office vacancy rates have declined enough to suggest rental growth over the coming years. Moreover, at 4.75%, the Brussels office yield spread is significant compared to other major office markets.
Despite the lack of both speculative development and rental growth in Brussels office market’s recent history, combined low vacancy, solid take-up and a projected positive outlook for rents better position CBD offices going forward. Steady, modest growth in GDP and employment, coupled with no immediate threat of overbuilding, should be sufficient to maintain healthy Brussels office market conditions over the medium term, the report concludes.
Irfan Younus, Head of Research, Europer at Savills IM, commented:
“The fundamentals make the Brussels office sector one of our current top office investment picks. Although moderate economic growth may result in modest rental growth, in an environment where there is strong competition for income returns, in our view the Brussels office market provides for an attractive yield play versus other European major cities.”