Construction Industry in Belgium - Key Trends , Opportunities and Forecast to 2017 : MarketResearchReports.biz
New Market Research Report "Construction in Belgium - Key Trends and Opportunities to 2017" Has Been Added In MarketResearchReports.Biz's Reports Database
Albany, NY -- (SBWire) -- 05/06/2013 --This report provides detailed market analysis, information and insights into the Belgian construction market, including:
The Belgian construction markets growth prospects by sector, project type and type of construction activity
Analysis of equipment, material and service costs across each project type within Belgium
Critical insight into the impact of industry trends and issues and the risks and opportunities they present to participants in the Belgian construction market
Assessment of the competitive forces facing the construction industry in Belgium and profiles of the leading players
Profiles of the ten largest construction projects in Belgium
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Summary
The Belgian construction industry valued EUR67.7 billion (US$94.3 billion) in 2012, recording a CAGR of 3.91% during the review period. Construction output decelerated from 7.1% in 2011 to 1.6% in 2012, as the Belgian economy contracted. Residential construction was the largest construction market and comprised a 48.9% share of the total construction industry value. Belgium recorded a housing price boom from 2000 to the first-half of 2008, driven by strong economic and income growth, low interest rates and increased competition among banks with regards to supplying credit. Unlike other European countries, such as Spain and Ireland, strong housing price increases did not give rise to a building boom. In terms of sales, total transactions declined by over 7% y-o-y in June 2012 while house price inflation slowed. Marginal economic growth is projected for 2013. This combined with rising unemployment, low consumer confidence, and a tight credit market means that the housing market will remain subdued over the year. The market is expected to rebound in 2014 driven by an improvement in the economic environment, strong housing demand, low interest rates and moderate household debt.
Scope
This report provides a comprehensive analysis of the construction industry in Belgium:
Historical (2008-2012) and forecast (2013-2017) valuations of the construction market in Belgium using the construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Assessment of the competitive environment using Porters Five Forces
Detailed profiles of the leading construction companies in Belgium
Profiles of the top ten construction mega-projects in Belgium by value
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Key Highlights
The Belgian construction industry recorded a CAGR of 3.91% during the review period and valued EUR67.7 billion (US$94.3 billion) in 2012. The industry is projected to grow at a CAGR of 2.50% and value EUR76.6 billion (US$106.7 billion) in 2017.
The Belgian economy contracted by 0.2% in 2012 and it is expected to record a growth of 0.2% in 2013. There are concerns over the countrys rising budget deficit. Belgium reduced its deficit from 3.7% of GDP in 2011 to 3% in 2012, with savings of EUR14.5 billion (US$19.4 billion). The government aims to reduce the deficit to 2.15% of GDP in 2013, with savings of EUR3.4 billion (US$4.4 billion) and will implement measures to limit wage increases. Tax breaks for companies are being planned to stimulate job creation.
The total office take-up increased in 2012, signaling an improvement in the business environment. Although office space demand exceeds supply, the share of speculative development continues to be low in Belgium. Letting transactions in high street locations and shopping centers has slowed, while most development activity is taking place in out-of-town retail parks. Timetric expects the market to register a CAGR of 3.04% over the forecast period and value EUR14.3 billion (US$19.9 billion) in 2017.
The government has invested heavily in the development of road, rail, port and air infrastructure and has developed itself as a major logistics and distribution location in Europe. Belgium is investing in the further development of intermodal transport, with the integration of different transport networks into one multimodal network. The country is looking at an ambitious plan of producing 100% of its energy needs from renewable sources by 2050.
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No budget cuts have been announced for the health sector, despite the announcement of EUR3.4 billion (US$4.4 billion) in savings for 2013. The institutional construction market is anticipated to grow at a CAGR of 1.75% over the forecast period and value EUR5.9 billion (US$8.2 billion) in 2017.
Residential construction was the largest construction market and comprised a 48.9% share of the total construction industry value. Belgium recorded a housing price boom from 2000 to the first half of 2008, driven by strong economic and wage growth, low interest rates and increased competition among banks. Unlike other European countries, such as Spain and Ireland, a strong housing price increase did not give rise to a building boom. Following a brief recovery in 2010 and 2011, the residential construction market weakened significantly, as the country faced a decline in economic output. Demand still exceeds supply however, and although the market will remain subdued over 2013, the long-term prospects are positive.
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