After a challenging year for the construction industry in 2024, a gradual recovery appears to be underway, according to an analysis released Wednesday by ING Belgium’s economic research service.
Last year, overall construction production decreased by 1%, with building production dropping by approximately 2.8% over the first 11 months, compared to 2023.
However, a slight increase has been observed in the past few months. ING’s study forecasts a 0.5% rise in construction output in 2025 and a 1% increase in 2026, along with a 0.2% rise in building production in 2025 and a 0.8% rise in 2026.
“The lowest point in construction production might now be behind us,” stated the study’s authors.
Nonetheless, ING expressed some reservations. The analysis highlighted that the number of building permits issued remains historically low. In 2024, the number of permits was about 8% lower than in 2023, with a significant drop for new buildings (-14%) and a sharper decline for residential buildings (-16%) compared to non-residential buildings (-4%).
“As a result of the decrease in permits issued in 2024, fewer new construction projects are expected to commence this year,” noted Alissa Lefebre, an economist at ING Belgium.
The study also pointed out that further long-term interest rate reductions by the European Central Bank (ECB) seem unlikely and that the cost of construction materials is expected to continue rising in the short term before stabilising.
Additionally, construction companies are struggling to find qualified personnel.
