In the first half of the year, 7,395 construction and installation companies in Belgium shut down, while only 6,625 were newly established, leaving a net loss of 770 businesses in the sector, according to data from Trends Business Information and sector organisation Embuild.
Embuild expressed alarm at the findings, particularly highlighting the decline in new business launches. The 6,625 new companies in the sector represent a 20% drop compared to the first half of 2024 and mark the lowest point since 2018.
The organisation attributed the downturn to “high fixed costs related to labour and materials,” a contracting market, and uncertainty surrounding the granting of permits.
The new-build construction segment has been hit hardest, facing both a rise in bankruptcies and fewer new company launches. Niko Demeester, CEO of Embuild, emphasised the urgency of revitalising the new-build housing sector to address Belgium’s worsening housing shortage and to curtail business closures.
Demeester suggested that permanently setting VAT at 6% for sales tied to demolition-and-reconstruction projects could provide a lifeline for the new-build sector. However, he stressed the need for quicker permit approvals to support recovery efforts.
