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
Breaking Down Silos: Why Building and Real Estate Must Work Together – Caroline Deiteren
The construction and real estate sectors are facing tough times, with no immediate improvement in sight. Activity is slowing down, despite the pressing societal challenges that require building, renovating, demolishing, and rebuilding. While there is rightful concern about the manufacturing industry, the importance and potential of the construction sector are being heavily underestimated. Embracing construction innovation can drive additional growth, benefiting everyone involved. The government, construction, and real estate sectors must tackle this together.
From Roofs to Neighborhoods: Kristof Eggermont of Ortelius on the Future of Sustainable Building
“The built environment in our country accounts for 20% of emissions. Through innovative solutions such as heat pumps and solar panels, we can not only drastically reduce CO₂ emissions but also create value for the real estate sector and society,” says Kristof Eggermont.
Revive founder Nicolas Bearelle on sustainable construction
“Sustainability truly doesn’t have to be more expensive than the classical patterns. Innovation and technology can help the real estate sector – and therefore consumers – reduce costs”, says Nicolas Bearelle, founder of project developer Revive. In the lead-up to Futurebuild Belgium, the trade show that spotlights sustainability and innovation, Realty Talks spoke with one of the undisputed pioneers of sustainability in the sector.
“More than ever, it is about the right investments in land” – Jo De Wolf
2024 was not an easy year for the world of logistics real estate either, especially as a listed company. Jo De Wolf, CEO of Montea, is cautiously optimistic, as well as realistic, about 2025. A lower interest rate can and will give the entire real estate sector some much-needed breathing room. He feels downright optimistic about the longer term. It is simply impossible to put off investments indefinitely, especially in infrastructure, residential construction and logistics.
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.
