Living outside zoning regulations: the new real estate gold
Living in a property that does not conform to current zoning regulations remains a complex and often misunderstood topic. While such properties have traditionally been valued lower than zoning-compliant homes, their appeal continues to grow due to their scarcity, unique locations, and long-term potential. Found & Baker offers a nuanced perspective on the debate and highlights the genuine added value these properties can offer both buyers and investors.
A property is considered “non-conforming” when it is located in an area where residential use is not permitted under current zoning regulations. This includes agricultural, recreational, industrial, park, and nature zones.
The value of a non-conforming property is generally estimated to be lower than that of a property located within a designated residential zone. According to David Fonteyne, Managing Director of Found & Baker, this perception is misleading: “Flanders is one of the most densely populated regions in Europe. The authorities are rightfully committed to protecting designated residential areas from incompatible uses. As a result, non-conforming residential properties are becoming increasingly scarce and highly sought after.”
Limited possibilities for change of use
At Found & Baker, demand for spacious, secluded properties offering peace and privacy has increased significantly in recent years. “Some clients literally tell us: ‘Silence is the new gold.’ People are willing to pay a premium for a uniquely located property, even when renovations are required. In our view, investing in a non-conforming property can offer considerable opportunities,” says David Fonteyne.
Do these properties involve greater risks? “A home that was legally permitted in the past does not lose that permit simply because it is situated in a non-conforming zone. It retains its value. Naturally, other factors such as location and property size also influence the final valuation.”
What is crucial, however, is that the property's current use is legally permitted. An unauthorized change of use is an entirely different matter. Consider, for example, a former farmhouse being used as a residential home without the necessary approval for a change of function. “Today, regularising an unauthorized situation is extremely difficult. Properly permitted non-conforming properties therefore represent an attractive investment opportunity.”
Another important consideration concerns regulations governing structural works, renovations, reconstruction, and extensions. In such cases, a planning permit is required. “Reconstruction or expansion is generally not permitted in spatially vulnerable areas, with the exception of park zones. Even then, the total volume is limited to 1,000 cubic metres, equivalent to a home of approximately 270 square metres. If you own a legally permitted property with a volume of, say, 2,000 cubic metres, that represents significant value. Obtaining approval for such a property today would simply no longer be possible.”
Heritage as a value driver
In addition to non-conforming properties, heritage status can also be a significant driver of value, according to Fonteyne. “The authorities are committed to preserving heritage assets. As an owner, you are therefore required to renovate and maintain the property to a certain standard. While this comes with strict regulations and added complexity, it remains a strong asset in terms of property value.”
The number of non-conforming residential properties is unlikely to increase substantially, as changes of use are now rarely approved. “For buyers, this provides reassurance that the surrounding environment will retain its current character and zoning designation. New residential developments are unlikely to appear unexpectedly. That further reinforces both the scarcity and the attractiveness of these properties.”
