The Belgian construction and installation sector has been experiencing a downturn since 2022 and saw a 0.5% decline in activity this year.
The latest figures were published in the new economic outlook released by construction federation Embuild on Tuesday.
The negative trend is expected to continue throughout this year and the next, with only a slight recovery forecast for 2027, estimated at less than 0.5% growth.
New housing construction has been hit particularly hard, experiencing a 5.5% drop in 2025, while the number of building permits has reached its lowest level in nearly 30 years.
Housing renovation results have also fallen below expectations, despite modest growth over the past two years, driven mainly by mandatory renovation policies in Flanders.
Embuild’s CEO, Niko Demeester, emphasised the urgent need to increase new housing construction and significantly boost renovation rates to address population growth and meet European energy targets. He stated that building up to 35,000 additional homes annually by 2030 is necessary.
Non-residential construction has also seen activity decline, with a 3.7% drop, alongside a 0.8% decrease in non-residential building renovations.
According to Embuild, the downturn in non-residential construction and renovations is partly due to the end of temporary stimulus programmes, European initiatives, post-2021 flood reconstruction efforts, and the completion of hospital renovation projects in Wallonia.
The federation welcomed the Federal Government’s decision not to increase VAT on new constructions, social housing, renovations, and demolitions-reconstructions.
The sector has seen a loss of 2,500 jobs over the last 12 months.
