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Navigate Belgium Real Estate Law

Navigate Belgium Real Estate Law: Expert Insights & Legal Support

Our Brussels-based Real Estate team offers unparalleled legal expertise in the dynamic Belgian market. Our unique one-stop approach provides comprehensive services by integrating key areas essential for successful real estate transactions. Our 15-strong lawyer team boasts specialists in crucial disciplines including real estate mergers and acquisitions (M&A), investment, development, financing, tax strategy, litigation, construction law, environmental regulations, urban planning and zoning, as well as energy considerations.

Our practice is adept at navigating international deals and provides end-to-end support throughout the transactional journey. We excel at adding value for our clients, sharing risk management strategies, optimizing investment returns, and offering innovative solutions for tax mitigation.

We serve a diverse clientele, ranging from national to international real estate owners, tenants, developers, contractors, and investors. Our clients are active in various market segments and we cater to all major asset categories such as commercial offices, logistics, retail spaces, senior living facilities, data centres, hotels, leisure venues, and infrastructure developments.

Our trusted advisory encompasses a wide spectrum of services, including real estate asset investments and disposals, project structuring, company listings, and everyday property management. We handle all forms of transactional, developmental, and redevelopment projects, including those related to construction and infrastructure.

This webpage is dedicated to keeping you informed on the latest legislative updates, judicial rulings, and legal trends impacting the Belgian real estate industry. We provide forward-thinking legal advice by closely monitoring developments such as the temporary indexation freeze for commercial leases, indoor air quality regulations, electric vehicle charging point mandates in car parks, and solar panel installation guidelines for shared properties. Stay informed with Linklaters as we guide you through the evolving legal landscape of real estate in Belgium.

Green clauses in leases: What, why, how? 

The integration of ESG concerns into real estate businesses has become increasingly important over the years. This concern was translated into legislation on various occasions: EPC, charging stations, renovation obligations… However, unlike its neighbouring countries, as of 2023, Belgium does not have any legislation defining or imposing green clauses in leases. The relevance of green clauses in leases can therefore only be understood, from a legal point of view, when considering the obligations stemming from the EU regulations, and, particularly, the EU Taxonomy Regulation. In this note, our experts provide a summary of the “need-to-know” of the EU Taxonomy applied to real estate and give a flavour of the various possibilities of green clauses.

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Insights series

Want to know how the topics of this series impact you? Click to read the publications below and contact us with any question you have.

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Brussels Goes Green (Part II) - Minimum EPB score and renovation obligations

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Reform amending the law of 11 February 2013 organising the profession of real estate agent

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Amendment of the Code of Territorial Development

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The EU Commission demands a reform of the Belgian Breyne Act

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Landlord's EPB certificate obligation and nullity consequences

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Insights Series Archives

Brussels goes green – Overview of the new air, climate and energy policy for the upcoming decades

The Brussels government has introduced its Regional Air-Climate and Energy Plan, which contains a comprehensive roadmap to reduce greenhouse gas emissions, mitigate climate change and promote renewable energy in the coming decades. Our Real Estate team has created a timeline of the (expected) upcoming legal obligations relevant to the real estate sector. 

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Forced co-ownership regime gets a sustainability-push

On September 25th, the Chamber of Representatives proposed a draft law that seeks to address the issue of sustainability in Belgium's building stock. This draft law imposes several new obligations on co-ownership associations and co-ownerships managers, such as drafting a multi-year maintenance plan and establishing new rules for reserve funds. 

Be sure to read our article for an initial overview of this potential future legislation!

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Pre-emption right for residential tenants in the Brussels Region

On 22 June 2023, the Brussels Government has adopted a draft ordinance amending the Brussels Housing Code  to introduce a pre-emption right for tenants whose main residence is offered for sale. If this Draft Ordinance gets approved, it will impose significant obligations on landlords who wish to sell their leased residential properties.

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Construction Law 2023: Chambers Global Practice Guide – Belgium

We are pleased to share with you our contribution to the Chambers Global Practice Guide: Construction Law 2023. Our expert team has authored the Belgian chapter, providing valuable insights into the construction sector. 

The guide gives a comprehensive overview of the legal issues and industry trends affecting employers, contractors, sub-contractors and financiers. It offers an overview of construction contract basics, ranging from elements affecting the price to exclusions of liabilities, from remedies in case of delay to retention rights and ESG in the construction sector.

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Upcoming reform of the environmental permit in the Walloon Region

The Walloon Government has proposed a legislative reform of the environmental permit aimed at strengthening the environmental protection and modernising the permit management. The main change concerns the unlimited duration of the environmental permit, as opposed to its current 20-year limit, combined with more flexible conditions and continued monitoring of business activities and potential environmental offences. The reform is not expected to enter into force before 2024. 

In this newsletter we elaborate on the effects this planned reform will have on businesses.

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The impact of the renovation obligation on real estate deals

On 1 January 2022, the first set of renovation obligations entered into force for non-residential buildings in Flanders. One year later, on 1 January 2023, similar obligations entered into force for residential buildings. Energy efficiency labels, minimum share of renewable energy, improved roof insulation and ban on single glazing are only a few of the obligations that could be imposed on your next purchase.

In this newsletter our real estate experts decrypt the obligations, per building type and per timeframe.

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Solar panels in a co-ownership in Belgium: some key legal issues

The ambition to boost renewable energy sources and reduce energy costs has intensified in recent years, even more since the beginning of the current energy crisis. Although solar panels have in this context become increasingly popular in the Belgian market, certain legal issues may arise in relation to their installation in a co-ownership and the sharing of the generated electricity. Our Real Estate team has reviewed the most recent legal changes relating to the “peer-to-peer” energy-sharing legislative framework.

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Law on improving indoor air quality in enclosed areas open to the public

A new federal law imposes legal requirements meant to enhance indoor air quality in public spaces like catering, sporting, retail and event venues. This law, as well as the upcoming royal decrees it provides a basis for, could have serious implications for both the operators and owners of such venues. Our Real Estate team explains what to expect. 

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The Ratios Decree in Brussels regarding charging points for electric vehicles

Electric vehicles are going to take more and more place in the traffic in Brussels. Building on this expectation, the Brussels Capital Region enacted a Decree determining the ratio of charging points required in different categories of car parks.  Office and residential buildings as well as car parks for public use covered by an environmental permit are targeted.  As each permit holder should be aware of this Ratio Decree, our Real Estate team has reviewed its main points for you.

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Ordinance limits temporarily the indexation of rents

As a result of the current energy crisis and ramping inflation, the Brussels Capital Region has decided to limit the indexation of commercial leases in the Brussels Region. The adopted ordinance of 15 December 2022 introduces a mechanism of temporary limitation of the indexation of commercial leases in an attempt to mitigate the consequences of inflation on businesses. Our Real Estate team explains the applicable limitation, the calculation formula and the impact of this new energy index. 

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Client successes

CBRE Investment Management

We advised CBRE Investment Management on the acquisition comprising the six remaining units of the logistics complex ‘MG Park Greve’ located in Copenhagen and three units as part of the logistics complex ‘MG Park Fredericia’ located in the Danish Triangle region, the latter being added to the joint venture between CBRE Investment Management and MG Real Estate. Linklaters was assisted by Plesner for MG Park Greve and Bech-Bruun for MG Park Fredericia.

Hotel Metropole Brussels

We advised the Bervoets family on the sale of the iconic Hotel Metropole Brussels. The Bervoets family has agreed on terms with Lone Star Funds for the acquisition of Hôtel Métropole SA, the company owning not only the Hotel but also several retail units on the Rue Neuve. The purchaser announced that the reopening, after renovation, of the Hotel Metropole is scheduled for the end of 2025.

Cityforward

We advised Cityforward on the structuring, financing, signing, and completion of Project Schuman. This transaction involved the European Commission selling 23 properties to SFPIM for €900 million, while keeping the usufruct for 17 buildings. SFPIM granted long-term lease rights on 21 of the 23 buildings to 21 SPVs incorporated and fully held by Cityforward.


 

Your Real Estate Team


Is happy to support you, to guide you through the measures your business will have to take, and to advise you on how your business might be affected by the new legislations.

 

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