The apartment market in Diest, a historic city in Flanders, Belgium, reflects broader trends in regional urbanization, demographic shifts, and economic resilience. This report synthesizes data on socio-demography, real estate dynamics, competition, and future projections to provide a granular understanding of market demand.

Socio-Demographic Profile

Population and Household Composition

Diest’s population grew from 20,768 in 1990 to 24,971 in 2024, a 20% increase, with a density of 415.8 inhabitants/km². The average household size is 2.44 persons, with 11,045 households. Females marginally outnumber males (50.8% vs. 49.2%), and the median age is 44 years. Foreigners constitute 6.6% of the population, primarily from EU countries and Asia.

Economic Indicators

The median after-tax income is €2,513/month, sufficient to cover 1.6 months of living expenses. Unemployment data is sparse, but Belgium’s national rate of 5.4% (2024) suggests moderate job-seeking activity. Approximately 29.3% of buyers in 2024 were under 35, indicating robust demand from young professionals.

Housing Tenure

Ownership rates are not explicitly reported, but rental properties account for 18% of housing stock, with 1-bedroom apartments renting for €658/month and 2-bedrooms for €844/month. Energy-efficient homes (EPC A/B) command premiums of up to 20%.

Real Estate Market Dynamics

Supply and Demand

Diest’s apartment supply is expanding, with 81 new units near the railway station and 400 units in the Ezeldijk district. Demand is driven by:

• Population growth (+0.7% annually).

• Strategic location between Leuven and Hasselt, attracting commuters.

• Sustainability trends, with 67% of renters prioritizing energy-efficient units.

Price Trends and Appreciation

In 2024, the median apartment price was €273,000, with new developments like LEY ranging from €252,000–€521,000. Prices rose 2.5% YoY, slightly above Belgium’s national average. High-end projects (e.g., Ezeldijk penthouses) reach €700,000, reflecting demand for luxury amenities.

Rental Market Regulations

Belgium’s rental market is regulated under EU frameworks, limiting rent increases to inflation-linked indices and requiring strict eviction justifications. Diest’s rental yields average 4–5%, appealing to investors.

Competitive Landscape

Key Developments and USPs

1. Ezeldijk District: Mixed-use project with 250 apartments, 95 senior living units, and a 800m² park. Prices: €280,000–€700,000. USP: Waterfront location and green spaces.

2. Watersnip: BEN-certified (Nearly Energy-Neutral) apartments along the Demer River. USP: Reduced VAT (6% vs. 21%) for eligible buyers.

3. LEY Project: Modern designs with terraces and underground parking. Price: €252,000–€521,000. USP: Proximity to Diest’s city center.

Sales Velocity

New projects report 30–50% pre-sale rates within six months, with energy-efficient units selling fastest. The Citadel redevelopment, a 27.6-hectare site, is expected to accelerate demand post-2027.

Target Groups and Pricing Strategy

Buyer Personas

• Starters/Young Professionals: Seek 1–2 bedroom units (€165,000–€300,000).

• Families: Prefer 3-bedroom units near schools (€340,000–€459,000).

• Seniors: Opt for service flats in Ezeldijk (€245,000–€375,000).

• Investors: Focus on rental properties with 4–5% yields.

Price Segmentation

Construction Trends and Top Streets

Sustainable Development

• BEN Standards: Mandatory for new builds, featuring heat pumps and solar panels.

• Mixed-Use Projects: Combining residential, commercial, and green spaces (e.g., Citadel).

Top Streets for Apartment Construction

1. Koning Albertstraat: Central location with prices from €179,500.

2. Michel Theysstraat: Luxury projects at €340,000–€375,000.

3. Oude Tramweg: New developments with 41% occupancy rates.

4. Demerstraat: Waterfront units near the fietssnelweg (cycling highway).

5. Sint-Annastraat: Mid-range family apartments.

Recommendations

1. Leverage VAT Reductions: Promote 6% VAT for qualifying projects to attract investors.

2. Prioritize Energy Efficiency: Certify all new builds as BEN to meet regulatory and buyer demands.

3. Enhance Mobility Links: Develop pedestrian/cycle bridges connecting stations to downtown.

4. Target Niche Markets: Expand senior housing and co-living spaces in the Citadel area.

Diest’s apartment market is poised for growth, driven by demographic resilience, strategic investments, and sustainability mandates. Stakeholders should align with these trends to capitalize on emerging opportunities.