Finance ION Residential Platform

Pioneer in Belgium

IRP is Belgium’s first institutional investment platform, which confirms ION’s innovative character.

ION Residential Platform

The future of Belgium’s rental market

Most residential real estate today is in the hands of private individuals. In that regard, we differ from other European countries, where large corporate operators rent out thousands of properties professionally. ION firmly believes the time has come to bring this trend to Belgium. In collaboration with international institutional asset managers Bouwinvest Real Estate Investors and CBRE Global Investment Partners, ION is investing 280 million euros in new-build homes and apartments exclusively for the rental market. “ION Residential Platform’s (IRP) objective is to make long-term investments in the residential rental market,” says Sam Bordon, Investment Director at ION. “This is driven mainly by rising real estate prices on the one hand, which means that fewer and fewer people can buy a property. The other factor is the increasing interest from real estate developers in selling an entire building to a single final investor at one time.”

Line Verroken of CBRE says the step toward professionalization is a smart move: “We have seen in other countries that this creates functional communal areas and enhances the quality of living. Residential property management is being taken to a new level. Issues such as broken heating boilers are more easily solved. So, it’s also advantageous for tenants.”

As well as the practical side, sustainability also plays a prominent role in this story. “It’s one of the platform’s key objectives,” says Jasper Petit of Bouwinvest. “Building sustainably now and creating cities where people can enjoy pleasant and affordable living is beneficial for long-term returns. What’s more, private individuals have fewer opportunities to invest in sustainable solutions than investors who own entire buildings. This means that, as institutional investors, we can truly make a contribution.”

Sam believes that other initiatives are sure to follow; in fact, there are already entrepreneurs with similar plans. “We believe these are positive signs. It just means we’re not alone in spotting these trends. It will also allow the market to improve more quickly. There is such a tremendous need for high-quality, affordable rental housing that there is certainly room for multiple players to meet that demand.”

New opportunities

These days, around 72% of Belgians are homeowners. However, it appears from a recent study that professionals within the industry are expecting home ownership to fall to 65% by 2030. These are tens of thousands of Belgians who will be renting homes rather than owning their own. The number of homeowners is already below 55% in major cities such as Brussels, Antwerp, Charleroi, Ghent, Liege, and Leuven. There is a downward trend, especially in new-builds - also around the major cities. This will create opportunities for both real estate developers and investors.