Rural homes: Pricey, but more affordable

Rural homes are loved for their expansive views, mooing cows and rustic surroundings. Although the prices of these homes have dropped significantly over the past year, they remain unaffordable for many people. Indeed, the average price remains high, making good preparation essential.

A rural home, located outside the built-up area or in a rural area, is becoming increasingly popular. Although prices rose faster than the market average in previous years, they have now also fallen. In just one year, the average price of a rural home has fallen by €90,000 to nearly €650,000 by the end of 2022.

Impact of energy label on price of rural homes

Rural homes tend to be more spacious than regular homes, so the energy label plays an important role in the selling price. Strikingly, rural homes with energy labels E and F dropped in price by an average of nearly 20 percent (-17% and -19%). Interestingly, comparable homes with energy label G dropped slightly less, by -11%.

While these homes remain popular, the energy label has not had a noticeable effect on sales velocity or number of sales. This suggests that there are still plenty of buyers moving to rural areas, despite the higher energy costs.

Considerations when buying a rural home

It remains attractive to buy a rural home. The energy label does not seem to affect the selling rate and number of sales of rural homes. Nevertheless, there are some important things to consider when buying:

• Financing: When buying a rural property, you can borrow up to 100% of the property value, provided it is zoned for residential use. If part of the property is zoned agricultural, you may not be able to get a mortgage for that part and will need your own money.
• Environmental issues: Rural homes or former agricultural properties may still have underground tanks or asbestos-containing materials. Removing or remediating these can be costly, so inquire about this with the selling agent.
• Soil contamination: In rural areas, soil contamination is more likely to occur than in urban areas. Therefore, conducting a soil survey is wise, as you as the owner are responsible for the quality of the soil and any remediation.
• Zoning: Pay attention to the zoning plan of the property you want to buy. If it is zoned agricultural and you do not intend to use it that way, you are acting in violation of the zoning plan. This may put you at risk of being denied a permit for future renovations. Even if the municipality tolerates you living there, this could cause problems if nearby residents file complaints.

Although the market for rural homes is cooling, their charm remains popular. If you are considering moving to rural areas, it is important to seek good advice, both on the purchase itself and on finance. Rural homes are generally more expensive than regular homes, so we are happy to help you with financing.

Please feel free to contact us, our advisors will be happy to help you!