Profit with purpose: Leveraging Belgian SIRs for General and Social Housing Solutions and Investor Growth Can SIRs Address Belgium’s Housing Crisis While Delivering Sustainable Returns for Investors?

Details

Supervisors

Van de Velden Kim

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

enBelgium is facing a persistent housing crisis marked by a structural shortage of affordable dwellings, in particular in urban areas such as Brussels, where demographic pressure, income inequality, and limited public housing supply have intensified access constraints for low and middle income households. At the same time, capital markets remain largely oriented toward financial performance, often disconnected from social objectives. This thesis explores whether Belgian Regulated Real Estate Companies (Sociétés Immobilières Réglementées, SIRs) can serve as an effective mechanism to reconcile these dynamics by addressing housing needs and delivering sustainable returns for investors. The research first provides a comprehensive analysis of the historical development, legal framework, and fiscal treatment of SIRs, situating them within the broader evolution of REIT regimes in Europe and internationally. It then examines the advantages and limitations of the SIR model, including its resilience to economic crises, favourable tax transparency, mandatory dividend distribution, and prudential constraints on leverage and diversification. Furthermore, the thesis analyses the nature and root causes of Belgium’s housing crisis, highlighting the mismatch between housing production and affordability rather than an absolute shortage of dwellings. Finally, the study assesses the potential of leveraging SIRs as instruments of “responsible capitalism,” capable of mobilising private capital toward general and social housing projects. Even if theSIR framework offers structural advantages for long-term investment and income stability, the analysis shows that significant legal, financial, and operational barriers limit its immediate capacity to resolve the housing crisis on its own. The thesis concludes that, although SIRs are not a unique solution, they can play a meaningful complementary role in addressing housing challenges when integrated into coordinated public–private strategies, aligning investor growth with social purpose.