A coalition of key players in the real estate sector united last week to issue a collective plea to all Walloon ministers to urgently address an escalating housing crisis.
A comprehensive solution, they believe, would be a reevaluation of urban planning fees, active support for external building insulation initiatives, and a nuanced adjustment of real estate taxation.
Prominent organisations, including Embuild (formerly known as the Construction Confederation), Federia (the Federation of French-speaking real estate agents), Fednot (the Federation of Notaries), UPSI (Professional Union of the Real Estate Sector), and UWA (Walloon Union of Architects), convened in Namur to present tangible strategies to mitigate the deepening housing crisis.
Speaking to RTBF, Hugues Kempeneers, the Managing Director of Embuild, emphasised the severity of the situation. He noted that construction costs have surged by 25% in just two years, equivalent to the increase experienced between 2008 and 2019.
Additionally, when adjusting for inflation, the purchasing power of Walloons has plummeted by a staggering 50% since 2019. As construction costs and interest rates continue to rise, the ability to acquire property has been cut in half in just four years.
Kempeneers further explained that interest rates have dropped from 1.2% to 4% within the same two-year timeframe, resulting in citizens allocating a significant 40% of their income to rent or mortgage payments. This dire situation is compounded by the fact that half of the existing housing stock predates 1945, and the rate of renovations is insufficient.
Confronted with these alarming statistics, the real estate stakeholders have sounded the alarm and submitted a memorandum to all Walloon ministers. Their goal is to spur concrete and effective measures to counteract the housing crisis.
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According to their assessment, a fundamental overhaul of urban planning costs is needed to reduce construction expenses. Simultaneously, they advocate for incentivised tax support for energy-efficient building improvements, all while positioning housing as a central focus in Walloon policymaking.
In the same RTBF report, Olivier Carrette, the Managing Director of UPSI, highlighted the daunting timeframes associated with obtaining building permits, which typically span four to five years.
He stressed the importance of nurturing public-private partnerships and increasing housing supply to drive down prices. Carrette concluded by noting that within a year, the demand for mortgage loans had dropped by 36%, making access to housing increasingly challenging.
