Affordable Housing and Tourism Growth: Brussels Rolls Out New Plan for Sustainable Development

Published on December 16, 2025

The city of Brussels is taking a significant step to address its affordable housing shortage by implementing a new initiative aimed at freeing up funds and targeting tourist flats. As part of the European Union’s first-ever Affordable Housing Plan, Brussels intends to tackle the growing imbalance between the residential market and the rise of short-term rentals, particularly those geared toward tourists. The initiative seeks to create a more equitable housing market while balancing the needs of both local residents and the booming tourism sector.

With the rising popularity of platforms like Airbnb and the increase in short-term rental properties across major European cities, Brussels, like many others, has seen a shortage of affordable housing. The new plan proposes measures to redirect properties currently used for tourist rentals into long-term housing options for residents, making more properties available to address the growing demand for affordable housing in the city.

Impact on the Brussels Tourism Market

Brussels, the capital of Belgium and one of Europe’s top tourist destinations, is renowned for its rich history, stunning architecture, and vibrant culture. The city attracts millions of tourists annually, with top attractions such as the Grand Place, Atomium, and the Royal Palace. The tourism industry, including short-term rentals, has been an essential part of Brussels’ economy, providing accommodation for visitors and contributing to the local economy.

However, with the increasing demand for tourist flats, the availability of affordable housing for locals has become a significant challenge. The rise of short-term rentals has led to higher rental prices and reduced the number of long-term rental properties available to residents. In response, the city is seeking to strike a balance between catering to the needs of the tourism industry while ensuring that its citizens can access affordable housing.

The new EU Affordable Housing Plan will target properties that are being used exclusively for tourism purposes, particularly in high-demand areas of Brussels. By repurposing these tourist flats into long-term rental units, the city aims to alleviate some of the housing pressures that have been exacerbated by the growth of short-term rental platforms.

Key Features of the Affordable Housing Plan

The Affordable Housing Plan for Brussels, as part of the broader EU initiative, is designed to tackle several key issues that have emerged due to the rapid expansion of the short-term rental market. The plan includes the following measures:

1. Repurposing Tourist Flats for Residential Use: One of the central aspects of the plan is to convert properties that are being used for short-term rentals back into long-term housing. By incentivizing property owners to rent out their units to permanent residents, the city hopes to increase the availability of affordable housing for local citizens.
2. Incentives for Long-Term Rentals: The city is introducing financial incentives for property owners who opt to offer their units for long-term residential leases rather than short-term rentals. These incentives may include tax breaks, subsidies, and other forms of support to make long-term rentals more attractive.
3. Stronger Regulations on Short-Term Rentals: Brussels is also strengthening regulations around short-term rentals. Property owners who want to rent out their units on platforms like Airbnb will need to comply with new rules that limit the number of days per year a property can be rented out short-term, helping to prevent housing shortages.
4. Targeting High-Demand Areas: The plan specifically focuses on areas of Brussels where the demand for short-term rentals has led to the most significant impact on the housing market. These areas include the historic city center, as well as popular neighborhoods among tourists.
5. Collaboration with the EU: Brussels is working closely with the European Union to ensure that the Affordable Housing Plan aligns with broader regional goals for sustainable housing and tourism management. The EU’s support will help fund initiatives and ensure the plan’s success across the continent.

Balancing Tourism and Housing Needs

The implementation of this new plan comes at a time when many European cities are grappling with similar challenges related to the growth of short-term rentals. While tourism is a vital part of Brussels’ economy, local authorities are acknowledging the need for sustainable solutions that address the housing needs of residents without stifling the tourism industry.

Tourist flats have played a major role in providing accommodation for visitors, and Brussels will continue to promote tourism through other means, such as the expansion of hotel options and encouraging more sustainable travel practices. At the same time, the city is striving to balance the growth of tourism with the need for affordable housing, ensuring that the benefits of tourism are shared by both visitors and the local community.

By reintroducing some of the tourist flats into the residential market, Brussels aims to ease the housing shortage while maintaining its status as a popular tourist destination. This initiative also promotes a more balanced approach to urban development, where tourism and housing can coexist in a sustainable way.

Future Prospects for Brussels’ Housing Market and Tourism

The success of the Affordable Housing Plan will depend on how effectively it addresses the ongoing challenges in the housing market. While the conversion of tourist flats into residential units will help alleviate some pressure, it will also be important to ensure that tourism continues to thrive, with ample accommodations for visitors.

In the long term, the plan is expected to contribute to a more stable and sustainable housing market in Brussels. As the city focuses on attracting a diverse range of tourists and maintaining its cultural appeal, the Affordable Housing Plan will help ensure that both residents and tourists benefit from the city’s growth and development.

Conclusion

Brussels is taking an important step toward managing the pressures of tourism and housing with its new Affordable Housing Plan. By targeting tourist flats and introducing incentives for long-term rentals, the city aims to create a more balanced environment where both tourism and local residents can thrive. As Brussels continues to develop as a top European destination, this initiative will play a crucial role in maintaining the city’s appeal while addressing the housing needs of its residents.