The Brussels office market is expected to see transaction volume surge to EUR 2 bn in 2011, following a first-half figure that represents a 96% increase on total investment in 2010.

According to the latest research report issued by Savills, EUR 943 mln was transacted in the first half of the year, with domestic investors accounting for 60% of acquisitions, followed by the Germans (30%) and the French (11%).

Investors have shown hesitation over the summer with only one deal transacted above EUR 50 mln during Q2. That was Espace Orban Complex which sold for EUR 80 mln, reflecting a net initial yield of 6.35%.

The property adviser predicts that long-term yields will remain at 5-5.25% with no further compression anticipated in the short term.