Summary

Following two years of contraction, the Belgian construction industry finally rebounded in 2018, with an annual growth rate of 1.2% in real terms. This recovery is expected to continue in 2019 and through the forecast period (2019-2023), in line with the pick-up of economic growth and the government’s investment in transport and energy infrastructure.

Over the forecast period, the industry’s expansion is expected to be supported by investments in energy and commercial developmental projects, as well as rising exports. Moreover, the expanding tourism sector, coupled with low housing loan interest rates, is expected to support industry growth over the forecast period. The government’s focus on the development of transport infrastructure with an aim to enhance mobility in the country is also expected to drive forecast-period growth. The government is spending EUR2.2 billion (US$2.6 billion) to develop the Brussels Regional Express network by 2025.

In real terms, GlobalData expects industry output to record a compound annual growth rate (CAGR) of 2.45% over the forecast period, which is up from 0.49% during the review period (2014-2018).

Key Highlights

- GlobalData expects the residential construction market to retain its leading position over the forecast period, and account for 41.2% of the industry’s total value in 2023, supported by the government’s plan to provide houses to middle- and low-income citizens at an affordable cost. In 2018, the government reduced registration fees by EUR21,875 (US$25,783.8) for new house buyers. In addition, in 2018, the government agreed to provide housing loans of up to 90% of the total housing cost at a subsidy interest rate to low- and middle-income families.
- Energy and utilities construction market’s output over the forecast-period will be driven by government’s focus on the development of transmission grids across the country. In May 2019, the government approved the Federal Development Plan 2020-2030, under which Elia, the country’s major transmission system operator, aims to construct a new transmission grid to transmit 4GW of offshore wind power by 2030.
- GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 5.91% in nominal terms in 2023, driven by government’s focus on the development of transport infrastructure with an aim to enhance mobility in the country. The government is spending EUR2.2 billion (US$2.6 billion) to build new tunnels, railway tracks and other related infrastructure of the Brussels Regional Express network by 2025.
- Institutional construction market’s output over the forecast-period will be driven by government’s focus on the education sector. In the 2019 budget, the government increased its total spending on the education sector by 2.6%, going from EUR13.6 billion (US$16 billion) in 2018 to EUR14 billion (US$16.3 billion) in 2019. Moreover, in May 2019, the government validated 27 new school projects, which will add 4,700 new places by 2025.
- The total construction project pipeline in Belgium - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at EUR40 billion (US$47.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 63.6% of the pipeline value being in projects in the pre-execution and execution stages as of November 2019.

GlobalData’s Construction in Belgium - Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Belgian construction industry, including -
- The Belgian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Belgian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Belgium. It provides -
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Belgium, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
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- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.