While civil engineering projects drive the Belgian construction industry forward, the residential sector faces a significant downturn, yet together they form a resilient €78.4 billion market poised for steady growth.
Key Takeaways
- In 2023, the Belgian construction sector's total value added stood at €28.4 billion, representing 5.8% of the national GDP
- The construction industry's output grew by 1.8% year-on-year in Q4 2023 compared to Q4 2022, driven by civil engineering works
- Belgium's construction market size was valued at €54.2 billion in 2022, with projections to reach €60.1 billion by 2027 at a CAGR of 2.1%
- The construction workforce in Belgium totaled 248,500 employees in Q4 2023, up 1.2% from Q4 2022
- Average gross hourly wage in construction was €28.45 in 2023, 12% above national average
- Unemployment rate in construction sector was 4.8% in 2023, below national 5.6%
- Number of new residential dwellings started: 32,450 in 2023, down 10.2% from 2022
- Average surface area of new residential permits: 120 m² in 2023
- Housing completion rate: 28,900 units finished in 2023
- Non-residential building permits floor area: 4.2 million m² in 2023
- Office construction completions: 285,000 m² in Brussels 2023, vacancy rate 9.2%
- Retail space new builds: 150,000 m² added nationwide in 2023
- Road infrastructure investment: €2.1 billion in 2023, including 150 km new highways
- Rail network expansions: 45 km high-speed lines completed in 2023, €1.3 billion cost
- Renewable energy plants in construction: 2.5 GW capacity under build in 2023
Belgium's construction industry grew modestly in 2023 despite a significant downturn in new housing.
Employment and Workforce
- The construction workforce in Belgium totaled 248,500 employees in Q4 2023, up 1.2% from Q4 2022
- Average gross hourly wage in construction was €28.45 in 2023, 12% above national average
- Unemployment rate in construction sector was 4.8% in 2023, below national 5.6%
- 72% of construction workers were male in 2023, with female employment at 28%
- Total self-employed in construction numbered 62,400 in 2023, representing 25% of workforce
- Labor shortages affected 45% of construction firms in 2023 survey
- Average age of construction workers was 44.2 years in 2022, with 18% over 55
- Part-time employment in construction was 8.5% of total jobs in 2023
- Number of apprentices in construction reached 12,300 in 2023, up 5% YoY
- Construction employment growth forecast at 1.5% annually to 2028, adding 15,000 jobs
- 15.2% of workforce had higher education qualifications in 2022
- Overtime hours averaged 4.2 hours per week per worker in construction 2023
- Foreign workers comprised 22.4% of construction employment in 2023, mainly from EU neighbors
- Absenteeism rate due to illness was 6.8% in construction, above national 5.2% in 2023
- Youth employment (15-24) in construction was 9.1% of total in 2023
- Wage indexation led to 11.8% increase in construction wages over 2022-2023
- 3,200 new construction jobs created in Brussels region in 2023
- Skilled tradespeople shortage index at 67/100 for electricians in construction 2023
- Average contract duration for construction workers was 18.4 months in 2022
- Women in management roles in construction firms: 14.3% in 2023
- Temporary agency workers in construction: 28,500 or 11.5% of workforce in 2023
- Training participation rate: 42% of workers received vocational training in 2022
- Employment in Wallonia construction: 85,400 full-time equivalents in Q3 2023
- Flanders construction employment: 142,100 in 2023, 57% of national total
- Job vacancy rate in construction: 3.2% or 8,100 unfilled posts in 2023
- Labor cost index for construction rose 5.9% YoY in Q4 2023
Employment and Workforce Interpretation
Belgium's construction industry stands as a resilient but creaky scaffold of economic growth, propped up by well-paid yet aging, predominantly male workers who are increasingly scarce, all while the sector desperately tries to plaster over its cracks with apprentices, foreign labor, and a stubborn gender gap.
Infrastructure and Sustainability
- Road infrastructure investment: €2.1 billion in 2023, including 150 km new highways
- Rail network expansions: 45 km high-speed lines completed in 2023, €1.3 billion cost
- Renewable energy plants in construction: 2.5 GW capacity under build in 2023
- Waterway maintenance dredging: 12 million m³ volume in 2023, €180 million
- Public transport hubs renovated: 28 stations with €420 million in 2023
- Wind farm onshore additions: 450 MW commissioned 2023
- Carbon emissions from construction: down 12% to 4.2 MtCO2e in 2023
- Green public procurement in infra: 72% of projects certified sustainable 2023
- Airport expansions: Brussels Zaventem new terminal phase €900 million 2023
- Flood protection works: 320 km dikes reinforced post-2021, €650 million 2023
- EV charging stations built: 8,500 new points on highways 2023
- BIM adoption in public infra projects: 88% in 2023 tenders
- Offshore wind grid connections: 1.2 GW linked in 2023
- Urban bike lane additions: 450 km nationwide in 2023, €120 million
- Waste recycling rate in construction: 92% by weight in 2023
- Solar PV on public buildings: 150 MW installed 2023
- Port infrastructure investments: Antwerp-Bruges €1.2 billion in quay walls 2023
- Digital twin implementations in infra: 15 major projects using 2023
- Low-emission zones infra retrofits: €85 million in urban areas 2023
Infrastructure and Sustainability Interpretation
Belgium is conducting a symphony of infrastructure, laying down roads and rails with one hand while deftly weaving in bike lanes, wind farms, and digital twins with the other, proving that building big doesn't mean you can't also build green and smart.
Market Size and Growth
- In 2023, the Belgian construction sector's total value added stood at €28.4 billion, representing 5.8% of the national GDP
- The construction industry's output grew by 1.8% year-on-year in Q4 2023 compared to Q4 2022, driven by civil engineering works
- Belgium's construction market size was valued at €54.2 billion in 2022, with projections to reach €60.1 billion by 2027 at a CAGR of 2.1%
- Building permits issued for new constructions increased by 4.2% in 2023, totaling 45,670 units nationwide
- The sector's gross value added per employee averaged €112,500 in 2022, up 3% from the previous year
- Construction production index rose to 105.3 points in December 2023 (2015=100)
- Total investments in construction reached €32.7 billion in 2023, including €18.9 billion in buildings and €13.8 billion in civil engineering
- The market contraction in new residential construction was 12.5% in volume terms during 2023
- Overall construction turnover grew 2.7% to €78.4 billion in 2022, per the latest Nace Rev.2 data
- Forecasted average annual growth rate for Belgian construction is 1.9% from 2024-2028
- Nominal growth in construction output was 4.1% in 2023, outpacing inflation by 1.3 percentage points
- The sector's contribution to employment was 6.1% of total national employment in 2023
- Construction GVA increased by €1.2 billion nominally in 2023, reaching €29.6 billion
- Real growth in building construction was -0.8% in 2023, while civil engineering grew 3.2%
- Total construction orders outstanding rose 5.3% to €45.1 billion by end-2023
- The industry's productivity index stood at 112.4 (2010=100) in 2022
- Construction market volume declined 1.2% in 2023 but is expected to rebound 2.4% in 2024
- Turnover per construction firm averaged €4.2 million in 2022, with 14,200 active enterprises
- Capital expenditure in construction totaled €2.8 billion in 2023, focused on machinery and equipment
- The sector's export turnover in construction services reached €1.9 billion in 2022
- Nominal construction investment as % of GDP was 9.8% in 2023
- Growth in non-residential building construction was 2.9% in real terms during 2023
- Total sector revenue forecast for 2024 is €82.5 billion, up 3.2% from 2023
- Construction deflation adjusted for input prices was -1.5% in Q3 2023
- Number of construction bankruptcies fell 8.7% to 1,245 in 2023
- Sector's intermediate consumption rose to €49.2 billion in 2022, up 6.4%
- Projected CAGR for construction market 2023-2027 is 2.5%, reaching €62.8 billion
- Construction output gap closed to -0.5% of potential in 2023
- Total fixed assets in construction firms totaled €38.7 billion in 2022
- Year-on-year construction PMI averaged 48.2 in 2023, indicating contraction
Market Size and Growth Interpretation
While still the country's 5.8% GDP backbone, Belgium's construction sector is having a solid, albeit slightly lopsided, year, growing like a carefully engineered bridge on the civil side while the residential housing market is currently under renovation.
Non-Residential Construction
- Non-residential building permits floor area: 4.2 million m² in 2023
- Office construction completions: 285,000 m² in Brussels 2023, vacancy rate 9.2%
- Retail space new builds: 150,000 m² added nationwide in 2023
- Industrial warehouse permits: 850,000 m² approved in Flanders 2023
- Hotel construction investment: €420 million in 2023 projects
- Educational buildings renovated: 1.2 million m² in 2023, €1.8 billion spent
- Healthcare facilities new floor area: 320,000 m² permitted in 2023
- Non-residential output growth: 3.1% in volume terms 2023
- Logistics parks developed: 12 new projects totaling 650,000 m² in 2023
- Office vacancy rate nationally: 7.8% in prime markets 2023
- Non-residential investment: €9.8 billion in 2023, led by industry at 42%
- Data center construction boom: 120 MW capacity added in 2023
- Sports facilities built: 45 new venues with €250 million investment 2023
- Commercial property permits value: €3.4 billion in 2023
- Factory expansions: 28 projects adding 450,000 m² industrial space 2023
- Non-residential energy retrofits: 2.1 million m² upgraded to low-energy in 2023
- Brussels office completions: 180,000 m², take-up 1.1 million m² in 2023
- Wallonia non-residential starts down 2% to 1.8 million m² 2023
- Sustainable certification (BREEAM/LEED) for 65% new non-res projects 2023
- Hotel room additions: 1,850 new rooms in 2023
- Total non-res floor area permitted: 5.1 million m², offices 32%, industry 41% 2023
- Retail rental growth: 2.8% in prime locations 2023
Non-Residential Construction Interpretation
Belgium’s construction sector is confidently building the future, though it appears to be putting its money where its boxes are, given the booming industrial and logistics projects contrasting with stubborn office vacancies and a thoughtful, sustainable overhaul of everything else.
Residential Construction
- Number of new residential dwellings started: 32,450 in 2023, down 10.2% from 2022
- Average surface area of new residential permits: 120 m² in 2023
- Housing completion rate: 28,900 units finished in 2023
- Residential construction investment: €14.2 billion in 2023, 43% of total building investment
- Apartment permits as % of total residential: 52% in urban areas like Brussels in 2023
- Energy-efficient new homes (EPB A/B rating): 68% of completions in 2023
- Renovation permits for residential buildings: 156,000 issued in 2023, up 7%
- Average cost per m² for new residential construction: €2,450 in Flanders 2023
- Social housing starts: 4,200 units in 2023, focusing on affordable segment
- Vacant dwellings rate in residential stock: 2.8% or 140,000 units in 2023 census
- Single-family home permits: 15,600 in 2023, down 15% YoY
- Residential output volume decline: 8.4% in 2023, worst since 2012
- Brussels residential permits: 5,200 units, 85% apartments in 2023
- Wallonia new homes price index up 6.2% to €198,000 average in 2023
- Renovation expenditure in residential: €8.7 billion in 2023
- Zero-energy residential buildings certified: 2,450 in 2023
- Flanders residential land prices averaged €285/m² in 2023
- Oversupply of residential stock: 18 months inventory in Q4 2023
- Multi-family residential starts: 16,850 units in 2023
- Residential construction firms: 7,850 active, generating €12.9 billion turnover 2022
- Permit approval time for residential: average 112 days in 2023
- New residential completions per 1,000 inhabitants: 2.6 in Belgium 2023
- Share of wooden frame residential new builds: 12% in 2023, up from 8% in 2020
Residential Construction Interpretation
While Belgium's housing market is energetically renovating its past and efficiently building greener, denser apartments, its current pace feels less like a bold new construction and more like a cautious renovation of ambition itself.
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