Seven in ten construction and housing renovation companies expect their situation to further deteriorate in 2025, reported the construction federation Embuild on Friday.
Only 13% foresee any improvement in terms of activity, profitability, employment and investment.
The outlook for the construction and installation sector appears "very bleak" as the Batibouw construction and renovation trade fair opens this weekend, according to Embuild.
The federation's survey found that 72% of house builders and 68% of renovation companies anticipate a continued decline in activity over the next six months.
Order books are less full than usual for 69% of companies, while only 7% report having fuller-than-normal schedules.
Despite this, Embuild CEO Niko Demeester insists it is still a good time to build or renovate. "In Wallonia and Brussels, housing prices are falling. Additionally, material prices have stabilised and mortgage rates have dropped to 3%."
'Concerning trend'
The federation notes these difficulties have been ongoing for several years. Last year, housing construction activity fell by 7%, while home renovation activity dropped by 1%.
"This is a concerning trend, given the challenges we face in terms of housing demand and energy-efficient renovations," Embuild explained.
However, the federation welcomes the Federal Government's decision to permanently set VAT at 6% for demolition-reconstruction projects for sale purposes. "We achieve two goals: demolishing energy-inefficient homes and creating additional, sustainable housing," said Demeester.
The survey was conducted before the start of the Batibouw fair on Saturday and prior to the announcement of an immediate change in renovation grant policies in Wallonia.
