The Batibouw exhibition, Belgium's largest trade fair for construction, renovation, and interior design, is set to commence on February 17, 2025. This event, which draws both professional and private visitors, has previously attracted approximately 175,000 attendees during its 2024 edition.

However, despite the fair's significance, a prevailing sense of pessimism looms over the construction sector as reported by the construction federation Embuild.

A recent survey conducted by Embuild among contractors and installers indicates that only 13% of construction companies expect improved performance in 2025 compared to the previous year.

In contrast, 70% of the companies surveyed anticipate a decline in their activities over the next six months.

The current order books of many firms are reported to be less filled than usual, although a small subset of businesses does report a stronger volume of orders.

Embuild points out that the present market conditions could be favorable for construction and renovation projects.

According to Niko Demeester, CEO of Embuild, housing prices in Flanders are rising at a rate that is lower than the inflation rate, while prices in Brussels and Wallonia are on the decline.

Additionally, material prices have stabilized, and mortgage interest rates have fallen to 3%.

Furthermore, the Arizona government has made a permanent reduction of the VAT rate to 6% on demolition and reconstruction projects intended for resale, a decision that has been welcomed by industry leaders.

Despite these factors, Embuild expresses concern regarding the long-term health of the housing and renovation sectors.

The federation indicates that these sectors have been struggling for several years, which poses significant challenges, particularly concerning housing shortages and the need for energy renovations.

Embuild estimates that Belgium will require an additional 375,000 housing units by 2030 to meet the growing demand.