Brussels property prices show resilience

Very little is heard about this Belgian city in terms of property investment as it was not affected by the recession in the same way as other European cities. It's precisely because it weathered the economic downturn much better that it deserves a second look for holiday homes, or buy to let investments.

The property market in Brussels is quite stable and although the number of transactions fell during the downturn, the actual prices only dropped by 1%. Buy to let properties can bring in impressive rental yields as there is constant demand for good rental properties due to the nature of the city.

Prices here have also risen by 5% over the last year as it is increasingly being seen as a safe haven for investments. Part of the attraction is that there is no capital gains tax on any residential property owned for more than five years, and shareholder transactions are not liable for capital gains tax.

A two bedroomed property in Leopold Village is currently selling at €330,000 and can be rented for €1700 a month which gives a rental yield of 6.1%. The one-bedroom apartments in this development can be rented for between €1150 and €1450 a month, providing yields of 5.5 to 6%. With yields like this it is little wonder that these apartments are being snapped up by foreign buyers who are looking for a safe investment in this often overlooked city.

The city has good transport links with the UK as there is not only an international airport but also a Eurostar terminal.