Savills Investment Management, the international real estate investment company has offices in Amsterdam, Copenhagen, Frankfurt, Hamburg, Hong Kong, Jersey, London, Luxembourg, Madrid, Milan, Munich, Paris, Singapore, Sydney and Tokyo.
The company has recently announced that it has seen positive yield within the Brussels’ central business district. Savills’ Research & Strategy Flash Note on this area has shown that the central business district office market appears to be an attractive market for investment.
Previously the central business district in Brussels has been slightly behind after the global financial crisis and the Eurozone sovereign debt crisis. It has now been noted that the office vacancy rates in the business district in Brussels has seen a decline. This means that there could possibly be some rental growth over the course of the coming years. On top of this positive news Brussels’ office yield is at 4.75% which is a significant level when compared to other major office market.
There has been a lack of speculative development and rental growth in the office market in Brussels recently as well as a combined low vacancy. However, the positive projections and the solid-take up has led to the suggestion that the rental market of the central business district in Brussels should improve. It is thought that a steady and modest growth in GDP and employment with no threat of overbuilding could work to maintain the health of the office market conditions for the medium term.
The fundamental aspects of the Brussels office sector currently make it one of Savills Investment Management’s top choices for investment in the office sector. It is thought that the moderate levels of economic growth could lead to a modest growth in the rental market which would then create an environment for strong competition and income returns. The Brussels office market is currently an attractive market for yield play in comparison to other major cities around Europe.