Knokke after the summer: a safe haven, or is it still sensitive to interest rates?

Knokke remains a safe haven for high-quality property. The market is becoming more selective, but demand remains strong for exceptional properties in prime locations. The key? Quality, scarcity and the right price.

Knokke after the summer: a safe haven or still sensitive to interest rates?

Now that the summer holidays are behind us, it is a good time to take the pulse of the property market in Knokke. The economic environment remains challenging. Interest rates are significantly higher than they were a few years ago, inflation remains a noticeable factor and buyers have become more discerning. At the same time, we are seeing that high-quality property in the best locations is holding up remarkably well.

The key question for the coming months is therefore clear: which will ultimately prevail? The market’s sensitivity to interest rates or the safe-haven effect of scarce, high-quality property?

Our own experience this summer is certainly encouraging. In the summer of 2026, our agency sold more property than during the summers of previous years. Activity remained strong, particularly in the higher-end segment, with sufficient transactions and prices that generally remained stable or rose slightly.

Of course, this does not mean that everything sells itself. On the contrary. The market has clearly become more selective, and a survey of colleagues and solicitors suggests that there are actually slightly fewer transactions. However, fewer transactions do not necessarily mean lower prices. The market may slow down whilst exceptional properties retain their value or even rise further in value.

Property as a safe haven

Affluent buyers continue to seek tangible assets in locations where supply is structurally limited. Prime property combines various elements that are difficult to replicate: location, views, architecture, quality of life and scarcity.

In this respect, Knokke boasts a number of exceptional assets.

The coastline is limited, building land is scarce, and in the most sought-after locations, high-quality property only comes onto the market sporadically. An apartment with an exceptional sea view, a renovated villa in Het Zoute or a property in a prime location cannot simply be replaced by a comparable alternative.

This creates a certain degree of protection against general market fluctuations. It does not mean that prices can rise indefinitely, but it does mean that the best properties behave differently from the average housing market.

Arbitrage and fair value

Perhaps that is ultimately the most significant development of our time. The buyer is not disappearing; they are simply becoming more discerning. In France, this market approach is aptly described as a matter of ‘arbitrage et du juste prix’: comparing, selecting and ultimately buying when quality and price are in the right proportion. That description fits particularly well with what we are seeing in Knokke today.

Location, orientation, views, the quality of renovation, the terrace, ease of parking and architecture are becoming increasingly important. The differences between properties are once again being assessed more closely. An exceptional property may command an exceptional price. But an average property priced as if it were exceptional will remain on the market for longer and will ultimately face negotiations.

That is perhaps the biggest change compared to the very strong market of a few years ago. Back then, general price rises could mask many differences between properties. Today, quality is once again being rewarded much more clearly.

And which will prevail?

That remains the interesting question for the autumn of 2026 and early 2027. On the one hand, higher interest rates will undoubtedly continue to weigh on part of the market. Those who need financing will face higher monthly repayments. Investors, too, are once again comparing property more closely with other asset classes. On the other hand, the financial position of the typical buyer of luxury property remains relatively strong. Moreover, the supply of truly exceptional properties in Knokke remains very limited.

We therefore do not expect a single, uniform market. The differences within the market are likely to become even more pronounced. Correctly priced properties in good locations will continue to sell readily. Properties with less appealing features or an overly ambitious asking price, on the other hand, will take longer to sell. Our own sales results from this summer certainly confirm that there are still plenty of buyers. The market has not disappeared; it has simply become more selective.

And perhaps that is ultimately the most important conclusion. There will always be buyers for the best properties in the best locations.

Not at just any price, but at the right price. The challenge for sellers and estate agents is therefore increasingly the same: not only to determine what a property might be worth, but above all to understand where the ‘juste prix’ lies today – the point at which quality, scarcity and willingness to buy converge.