More than 5 million m2 of sites are waiting for permission to build because of a slow and complex building permission policy. Especially in Brussels. The health crisis has added another 6 months to the delay.
UPSI (the Belgian Federation for Real Estate) regularly repeats that obtaining the necessary permits to launch a real estate project has become a major problem in Belgium. But today, to back up its claim, it is using figures collected from a large majority of its members.
Members that carry weight since they represent 80% of the total construction market and 4 million square metres under development, currently awaiting permits. To understand their frustration, add to this another million square metres authorised by permit, but involved in interminable appeal processes.
The current malaise in the sector, as documented by UPSI, is not just about large and small office and commercial projects: more and more housing projects are also being held up in administrative and legal limbo – especially in cities where these ongoing projects are complex, mixed and intense.
Brussels, the bottleneck for delays
Appeal procedures for the permits issued are a problem in all three regions. But it is mainly in Brussels that the proportion is overwhelming. According to the recent survey launched by the UPSI, it takes an average of 2 years and 7 months to obtain a permit. But for a quarter of the cases in progress, this time rises to at least four years. And nowhere else are so many appeals registered: they affect 42% of projects.
Since the processing of an appeal procedure takes as much time as the basic procedure itself, the time taken to process 42% of the dossiers must be doubled. And the recent health crisis has added a further 6.5 months to this timeframe.
In other words, in two out of five cases submitted to Brussels, it takes an average of five years and eight months to obtain a permit, with peaks of up to 11 years and more.
Urgent appeal reiterated to the future government
“Something must be done about this. The sterile impotence of the sector – further reinforced by the health crisis – requires an electroshock. Politicians keep complaining that housing is too expensive, but have they ever really calculated – for the State as well as for us – the additional costs caused by the length of the permit and appeal procedures, which, when the procedures drag on, are higher than the basic cost price of the housing concerned? By simplifying and accelerating these procedures, without circumventing them of course, everyone would win, starting with the buyer,” stresses Stéphane Verbeeck, the UPSI president. He also mentions two figures: 120,000 jobs and 6 billion in revenue for the State, frozen by these unnecessary delays.
Photo: Stéphane Verbeeck, President UPSI-BVS
Towards a Sustainable Future
Reconversion and renovation are terms that have become commonplace in the world of real estate in recent years. “If we all want to achieve the 2050 climate goals, something has to be done about our ageing real estate assets,” many real estate experts have been saying for some time now. From a historical point of view, renovation already adds value. “But even for industrial buildings that are not protected, a conscious choice is often made for redevelopment,” states Erwin Vrijens, Head of Real Estate at PMV, which has a wealth of experience in counselling and financing in the domain of sustainable area development and supporting real estate projects with historical or social importance.
Navigating Unprecedented Times
That we are living in extraordinary times is something the professional real estate market is aware of like no other. Whether developers, building owners, investors, consultants or users, they are all facing particularly challenging times. Colliers, a global leader in property services and investment management, realizes this too. In this article, David Vermeesch, Managing Partner at Colliers Belgium, takes us through the opportunities and challenges that the sector is currently facing and how at Colliers they are dealing with them.
Focus on the City of Brussels
‘Bruxelles ma belle’ or is it rather ‘Brussels is a hellhole’? Opinions about Europe’s capital differ around the world. But there is no doubt that Brussels is different from so many other cities and has its own identity. According to debate moderator and Brussels expert Jeroen Roppe, this is due to the various peculiarities that the capital has incorporated over the decades.
Outlook for Real Estate in Belgium
The past two years have not been a walk in the park for the real estate sector in Belgium either. Now that the corona crisis and the explosion in energy prices are behind us, everyone is looking longingly to the reset of the real estate sector. And there is hope for improvement.
Innovation Drivers in Real Estate
In 2024, the construction and real estate sectors are confronting a blend of new challenges: rising interest rates, lower sales, and expensive materials, in addition to historical issues like digitization lags, environmental concerns, and a labor deficit exceeding two million. It demands urgent attention and solutions to relieve these burdens off the sector.
– by Idriss Goossens, Founder & CEO of PropTech Lab
Reviving the Real Estate Markets: Navigating Uncertainty in 2024
As we step into the second half of 2024, the real estate landscape stands at a crossroads, caught between the promise of economic revival and the specter of uncertainty looming on the horizon. Let’s delve into the key factors shaping the real estate markets and explore the pathways ahead.
– by Patrick Luysterman, ex-journalist De Tijd and conference moderator at Realty 2024
