How was the annual report compiled?
Data
Realo holds the most comprehensive database of real estate data in Belgium since 2014. The analyses were conducted based on information from online advertised properties in Belgium between January 1, 2017, and December 31, 2023. Reported prices are therefore based on asking prices and not transaction prices.
Price Models
Realo developed several price indices for this report. Each price index accounts for the characteristics of the properties to estimate price evolutions independent of specific features or temporary market preferences. The model includes factors such as location, living area, number of bedrooms, energy consumption, and age of the properties. Statistics based only on price, like median prices, do not consider the underlying characteristics of the properties and may potentially create a distorted view of the market due to temporary variations in the type of sold properties.
The reported prices are derived from the models based on a standard property with defined characteristics. For houses, this refers to a detached house of 170 m2 with 3 bedrooms, 1 bathroom, a garden, an energy consumption of 400 kWh/m2/year, and an age between 31 - 45 years old. For apartments, the reference property is an apartment of 95 m2 with 2 bedrooms, 1 bathroom, an annual energy consumption of 200 kWh/m2/year, and a maximum age of 15 years. This approach allows for better comparability between municipalities, but the reference property may be less representative of a typical house in some municipalities.
The model that estimates how much a property's price is determined by its energy consumption is based on a similar model developed by the National Bank of Belgium (NBB). To make a more accurate comparison of properties offered for sale between 2019 and 2022, the model accounts for, among other things, the living area, location, number of bedrooms, and year of the last major renovation.
Read the full annual report here
