Locals fear huge hike in house prices

Date: 29/04/04

IT's been dubbed one of the most historic days in European history, but not everyone is rejoicing at the prospect of EU expansion.

Enlargement is predicted to see an influx of 6,000-10,000 diplomats, civil servants, journalists and lobbyists, into Brussels over the next few years. They will arrive in search of offices, accommodation and car parking spaces.

That may be good news for the city's hoteliers, restaurateurs and taxi drivers, but the prospect has gone down badly with locals, who fear the prospect of EU enlargement pushing up property prices.

For years, house prices in Brussels have remained as constant as the city's persistently grey weather, far lower than those of equivalent properties in other European capitals. But many fear that from 1 May, that is likely to change.

Philippe Gilson, who runs a property management business, sees a clear connection between enlargement and property prices. "Half my clients work at the [European] Commission. We are talking about 15,000 families in the institutions, plus the surrounding activities. So they have a big impact on the market."

Pharmacist Alain van Cutsem, 65, had hoped to move back to his native Brussels from Braine L'Alleud when he retires this summer, but has been put off by high property prices in the capital. "Several estate agents have told me that prices have definitely increased due to the expected influx of people from new member states."

His comments were echoed by Moritz Lennert, a researcher at Igeat, an urban planning institute attached to Brussels Free University, who said: "Brussels has been completely polarized. On the one hand, you have the Europeans and other internationals who have a high level of income and, on the other, you have lots of people in the centre who earn very little."

Enlargement of the European Union and an influx of diplomats, civil servants, journalists and lobbyists into Brussels over the next few years has led to an increase in property prices in the capital. Article is part of a European Voice Special Report on EU Enlargement.