What is the impact of the presence of European institutions on the real estate market in Brussels and its outskirts? 

Nicolas Bernard, legal expert and specialist in the right to housing, attempts to answer these questions in the article published on 8 September in Brussels Studies.

Firstly, he points out the fact that the presence of European civil servants and their families, as well as the related institutions and organisations, does not only concern the 'European' quarter. The entire city is experiencing the effects of the influx of these people in search of housing. A significant number of Europeans are settling on the outskirts of Brussels. Within Brussels, their presence has direct effects (a rise in housing prices in the neighbourhoods they live in) and indirect effects (in the less prestigious neighbourhoods which other buyers have been forced to turn to). The staff of the European Union and related institutions and organisations have therefore triggered a chain of events in their search for housing.

The author then explains the specific nature of the situation in Brussels: the presence of the European institutions in the very heart of the city, coupled with the passiveness of the political authorities faced with the extremely aggressive speculative strategies developed by the private stakeholders responsible for the construction of buildings, have led to a monofunctionality of the areas concerned, which the competent stakeholders fail to take responsibility for, despite their promises.

Finally, we must not forget that the presence of the European Union is not the only reason for the rise in housing prices. External causes have also played a part, such as lower interest rates, the lack of public housing and the increase in the population of Brussels.

Although we must acknowledge the role of the European Union in the rise in real estate prices, this summary of the situation prompts us to see things from a wider perspective and to focus on the actions which could help those who experience difficulties in finding housing. The public authorities – who make l ittle (if any) use of the means of action at their disposal (taxes on deserted buildings, public management law, requisition law, etc) – are thus reminded of their responsibilities. The author also underlines the fact that rent allowances and regulated rental prices do not exist in Brussels, and that there is an extremely low proportion of public housing.

Nicolas Bernard has a bachelor's degree in philosophy and a doctorate in law, and is a professor at the Facultés universitaires Saint-Louis. He is a member of the Board of Governors for Housing in the Walloon Region (Conseil supérieur du logement de la Région wallonne) and an expert attached to the Advisory Council for Housing in the Brussels Region (Conseil consultatif du logement de la Région bruxelloise), as well as being the director of the Institute for Interdisciplinary Research on Brussels (Institut de recherche interdisciplinaire sur Bruxelles, IRIB) at the Facultés  universitaires Saint-Louis. His recent research has led him to explore the issues of the right to tenancy, the inalienable right to housing, the 'wooncode' and discrimination, substandard housing for women, evictions, etc.  

Published in Brussels Studies, the e-journal for academic research on Brussels.

Europe's hold over real estate prices in Brussels is a significant reality. As regards the direct impact, this effect is both limited in geographic terms and confined to a certain segment of the built-up area. However, the concentration of EU staff in the affluent neighbourhoods of the capital and in the higher property categories does have indirect effects on the other sectors. As these prosperous areas gradually become financially inaccessible, the demand turns to slightly less exclusive areas — both nearby and further away — which, in turn, experience a rise in prices, and so on. Furthermore, the danger probably also lies in the gentrification caused by the Europeans despite themselves, as they settle in certain run-down neighbourhoods in the city centre.

Although it has an unquestionably beneficial effect on the economy and the international influence of Brussels, Europe also has a certain impact on the real estate in the capital. This impact must not be exaggerated, nor must it be underestimated. In any event, it is inflated by the unplanned urbanisation which has accompanied the development of the European quarter and which thus gives Europe a very negative image: by definition, it is guilty of all offences. And yet, safety nets exist to counter these inflationary effects (taxation of capital revenue, restrictions on rents, antispeculative measures, rent allowances, increase in the amount of public housing, etc). By implementing at least some of these measures, the public authorities — federal or regional, according to their remit — would do more than bring relief to the finances of low-income households (thus helping to keep them in the region); they would restore opportunely the tattered pact between the inhabitants, the city and the EU institutions located there. It is a question of necessity for social cohesion and truly democratic and popular support for the European project.

Facultés Universitaires Saint-Louis à Bruxelles
43 Boulevard du Jardin botanique
1000 Bruxelles
Belgium
Phone: 0032 2 211 78 11
Fax: 0032 2 211 79 97
http://www.fusl.ac.be/
Nicholas Bernard (Professor), tel. 0032 2 211 78 44

08/09/2008

Nicholas Bernard

research

Urban Policy

Housing