Brussels (Brussels Morning) – The issuance of new construction permits in Belgium hits a ten-year low, with nearly 20% fewer permits issued in January and February compared to last year, attributed to high interest rates and rising construction costs.
The number of new construction permits issued in the first two months of the year is at the lowest level in ten years. This is evident from figures from Statbel, the Belgian statistical office.
In January and February together, a permit was issued in Belgium for 3,531 new-build single-family homes and apartment buildings. That is almost 20 per cent less than in January and February last year. The decrease in Flanders was 22 per cent. Since 2015, fewer permits have been issued in the same period.
“If we look at the number of licensed new residential properties – so houses and individual flats – then 7,777 permits were granted in January and February. That is the lowest figure since 2017 and a decrease of 11 per cent compared to last year.”
What Factors Contribute to the Decrease in Construction Permits?
Construction Federation Embuild Flanders refers to the high interest rates and rising
construction costs, which means that fewer and fewer people can buy a house or apartment. “But it is also becoming increasingly difficult to obtain a permit. There are spatial restrictions and permit processes take longer,” says Caroline Deiteren, the new director general of Embuild Flanders. “It is not an obvious situation for our contractors.”
The number of applications for a new construction permit is also decreasing. In the first three months of the year, 9,414 permits were applied for in Flanders through the environmental counter: the lowest figure since 2018. Compared to the same period last year, 5 per cent fewer new construction permits were applied for.
Embuild Flanders uses the figures to argue for the housing guarantee. Prospective buyers with little equity, but with sufficient repayment capacity, would receive support from the Flemish government. However, the approval of the measure in the Flemish Parliament was postponed. “Given the urgency for young starters, Embuild Flanders asks all parties to take action on this as quickly as possible after the elections,” the construction federation said
