A look ahead to 2026

The property market in Knokke-Heist is set to experience a year of stability and moderate growth in 2026, with price rises of up to 5 per cent for high-quality properties. Scarcity, prime locations and an increasing focus on comfort and sustainability remain key factors. Discover the key market forecasts for 2026 and how Alex Dewulf and Knokke Real Estate are working together to strengthen their position.

Property in Knokke-Heist in 2026: a cautious look ahead.

“A ‘muddle-through’ outcome — not great, not terrible — is often the most realistic result.”

[J. Mauldin]

That sentiment sums up what 2026 is likely to bring for a luxury seaside resort such as Knokke-Heist: no exuberant growth, but a robust market underpinned by scarcity, quality and enduring confidence. For the property market in Knokke-Heist, 2026 looks set to be a year of normalisation. Not a downturn, but a phase in which stability, selectivity and long-term thinking take the upper hand.

As a luxury seaside resort with a distinct second-home market, Knokke-Heist continues to operate in a structurally different way to the average Belgian property market.

Economic outlook: moderately positive

The economic outlook for 2026 is cautiously favourable. Inflation is significantly lower than during the peak years of 2022–2023, and interest rates appear to be stabilising, with even scope for slight falls. Moderate economic growth of around 1.1 per cent is expected for Belgium. If the announced German investments in infrastructure and defence do indeed gain traction, this could also indirectly support the Western European economy.

For the property market in Knokke, this primarily means greater calm in the decision-making process. Buyers are less likely to act out of a sense of urgency or fear of inflation, but are regaining confidence in long-term value.

Market trends: scarcity and selectivity

The fundamental principles remain strong. Prime locations are and will remain scarce, particularly on the Zeedijk, in the Zoute and in other first-class micro-locations. Furthermore, Knokke is becoming an increasingly attractive destination thanks to a combination of safety, accessibility, quality of life and climate considerations. For a high-net-worth clientele, it remains one of the most stable residential choices on the North Sea coast.

At the same time, the market has clearly become more selective. Buyers are taking a more critical look at layout, natural light, energy performance and the standard of finish. Whereas in the past almost everything sold, there is now a wider price spread between high-quality properties and those with structural or energy-related shortcomings.

What buyers and residents are looking for today

The typical buyer in Knokke-Heist in 2026 is looking for more than just an address. Well-being, space, privacy and comfort are key. Large terraces, high-quality outdoor spaces, good acoustics, wellness features and convenient parking are decisive factors. Sustainability is also gaining in importance in new-build and renovation projects, although the return on investment is playing an increasingly significant role in these.

For permanent residents, proximity to amenities, schools and transport links remains crucial, whilst second-home owners focus primarily on tranquillity, views and hassle-free use.

Uncertainties: taxation and geopolitics

As always, the government remains an uncertain factor. Tax reforms – such as a possible capital gains tax on property or changes to existing favourable tax regimes – are causing some investors to adopt a cautious stance. On a positive note, the reduced VAT rate for the renovation of older properties is set to remain in place for the time being, which is particularly relevant in Knokke.

Furthermore, the geopolitical context remains a wildcard. International tensions, energy prices and developments abroad may influence foreign interest, although historically this has proved to be fairly resilient in Knokke.

Price forecasts for 2026

In a base-case scenario, a price increase of between +3% and +5% for 2026 seems realistic, provided the property is the right type in the right location, with high-quality finishes and limited supply.

By market segment, this translates as follows:

• Ultra-prime property (Zeedijk, Zoute, exceptional terraces and views): +3% to +6%
• Prime segment (first and second-line seafront, core Zoute area): +2% to +5%
• Good secondary locations (city centre, Albertstrand, Duinbergen): 0% to +3%
• Properties requiring renovation and with poor energy performance certificates: largely stable to slightly falling, with greater scope for negotiation

Should negative factors prevail – such as a further rise in interest rates, stricter regulations or declining foreign demand – growth may remain more limited or temporarily stagnate.

Alex Dewulf joins forces with Knokke Real Estate

We are particularly looking forward to 2026 for a special reason. We are taking a major step forward in the further development of our estate agency activities in Het Zoute, as Anouska De Smul’s team (Knokke Real Estate) is joining us. Together, we will form a team of 20 property professionals with a strong presence in every sub-market between Duinbergen and Het Zoute, and we will be even better equipped to advise you on your property plans.

Conclusion

2026 does not promise to be a spectacular year for Knokke-Heist, but it will be a healthy and balanced year for the property market. No euphoria, but confidence. That is what makes Knokke-Heist, even in a changing world, one of the most robust luxury property markets in the country.

First and foremost, we wish you a happy end to the year. We hope you’ll be spending the festive season in Knokke, surrounded by friends, family and loved ones.