Anyone who wants to buy a building plot must have a solid budget. In the first half of 2023, the median price for a plot in Flanders amounted to 223,494 euros. That is 35 percent more than in 2018, according to figures from Notaris.be. At the median price, half of the sales are more expensive and half are cheaper.
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Of course there are regional differences. Anyone who has their eye on a building plot in Flemish Brabant should be able to pay 260,108 euros. East Flanders was the second most expensive province, with a median price of 256,943 euros. Limburg was the cheapest province, with a median price of 140,034 euros.
A small lot is cheaper, right?
Making peace with a small lot can reduce the price of a ticket. But know that the price increase in building land per square meter is even more pronounced. In the last five years, the price per square meter has risen by no less than 56 percent, from 275 to 429 euros. East Flanders is the most expensive Flemish province, with a price of 554 euros per square meter, followed by West Flanders (499 euros). Limburg is the cheapest province, with a price of 230 euros per square meter.
The purchased lots did not become spectacularly smaller, however. Figures from notaris.be show that the average surface area in Flanders in the first half of the year was 7.4 ares, compared to 7.8 ares five years earlier.
How can I still buy in an ‘expensive’ municipality?
Anyone who grew up in an expensive municipality may be forced by the high prices to move to a place with which they have little or no connection, either professionally or family-wise. To combat this, Flanders developed a scheme through which municipalities can help local residents with the purchase of land.
This so-called ‘Living in Own Region’ (WEIS) will become possible in the 95 Flemish municipalities where social displacement is most noticeable. This concerns municipalities in the Flemish Rand around Brussels, large cities such as Antwerp and Ghent, the coastal municipalities of Koksijde, Nieuwpoort, De Haan and Knokke-Heist, but also smaller municipalities such as Borsbeek. These municipalities may be able to use the scheme from January 1, 2024. The list of cities and municipalities is updated every six years.
The cities and municipalities involved can join the new system via the municipal regulations, but are not obliged to do so. It is not yet clear how many and which municipalities will do this. The financial contribution comes from the municipality, which means that much will depend on budgetary options. Flemish Minister Ben Weyts (N-VA) will release money for the municipalities in the Flemish Rand through the Vlaams Randfonds.
What are the advantages of Living in Your Own Region?
A participating municipality pays at least half of the estimated value of the land share. But she can also pay more, up to the full 100 percent. The municipality can also acquire the land itself. The ‘bricks’ are in any case borne by the buyer.
Please note, this does not apply to any plot in the city or municipality. The WIES scheme only applies to land in subdivision projects with at least five lots, for land in group housing projects, and for new apartment buildings with at least five residential units.
Municipalities that participate in Wonen in Eigen Streek pay at least half of the estimated value of the land share. But they can also pay more, up to the full 100 percent.
The council of aldermen decides for each construction project whether WIES applies to it. If this is the case, the municipal regulations determine what percentage of homes are required to be sold to a WIES buyer.
There are limits, however. For land owned by private individuals, this is a minimum of 20 and a maximum of 40 percent, each time reduced by the percentage for a social or conventional (rented below the market rent) housing offer. If the municipality itself acts as a project developer, it must reserve at least 40 percent of the homes for Living in Own Region.
Who is eligible for Living in Own Region?
Buyers must have a connection with the municipality. In addition, there are income limits. All conditions at a glance:
- Have lived continuously in the municipality or a neighboring municipality for at least five years in the ten years before the date of transfer.
- Have a joint taxable income of at least 12,078 euros annually. The income of a single person may not exceed 53,145 euros. For a couple, the upper limit is 77,301 euros, with an additional 4,831 euros per dependent.
- Not owning another property or selling it within one year of the execution of the deed.
- Be 18 years old and registered in the population registers.
The municipality can impose stricter conditions and, for example, limit the scheme to people who live in its own municipality. Even after the acquisition, the buyer must meet a number of conditions. He must remain in the home for 20 years. If this does not happen, he must pay compensation to the municipality, in addition to the reimbursement of the municipal contribution upon purchase.