Belgium's building and construction market is a dynamic landscape encompassing various key sectors, each influenced by distinct economic factors and trends. Perhaps the most affected sector in the country is the commercial sector, which in 2023 has been on a steady downward trajectory. Factors for this current dip are rising interest rates in addition to inflation.
In 2023, the industrial construction sector faced a contraction due to decreased foreign direct investment and export activities. However, a potential turnaround is expected post-2024, if broader economic improvements are made. Investments in the industrial and manufacturing sectors are anticipated to be key drivers during this recovery. GlobalData projects growth in the infrastructure construction sector for the year 2023. The period from 2024 to 2027 holds promising prospects, supported by government initiatives to enhance transport infrastructure through collaborations with the private sector.
Building activity in the energy and utilities sector was poised for growth in 2023. Continued expansion throughout the forecast period is anticipated driven by both public and private investments in developing robust renewable energy infrastructure. While the institutional construction sector may contract in 2023, future growth is expected during 2024 to 2027. This resurgence will be powered by strategic investments, both public and private, in the education and healthcare segments.
Challenges, including weak consumer and investor confidence amidst inflation and housing price concerns, contribute to an expected decline in the residential construction sector in 2023. However, renewed growth is anticipated from 2025 to 2027, supported by substantial public and private investments aimed at fostering the housing sector's development. In navigating Belgium's building and construction industry, one needs to recognize these sector-specific trends in order to seek new opportunities and prepare for future shifts in this dynamic market.