Belgium's construction and installation sector is forecasted to stabilise in 2024 but not rebound, according to the construction federation Embuild.
Whilst building activity slumped by 0.7% in 2023, the sector has been boosted by a growth in infrastructure works. However, the country now faces a fresh crisis in housing construction crisis, which Embuild predicts will continue in 2024, with an overall decline of 5% in activity.
The outlook is brighter in the renovation sector, which Embuild forecasts will grow 1.6% in 2024. However, the federation cautioned that "this growth falls short of European standards to reduce the carbon footprint of the construction sector by 2050." It argues that the renovation rate will need to triple in Flanders and even quadruple in Brussels and Wallonia in order to align with EU objectives.
2024 is expected to be a turning point for the non-residential building sector, with a growth rate of 0.9%. Yet non-residential building renovation fell 2% after three positive years, largely due to the completion of the recovery plan post the July 2021 floods, European recovery plans, and Wallonian hospital renovation plan.
Infrastructure works are also expected to rise 4.4% in 2024. However the federation explains that in the wake of elections, the situation will likely become harder for this sector with an anticipated activity decrease of 2.2% in 2025.
