2024-01-21 05:32:00
The construction sector is pessimistic at the start of the year. According to the latest economic survey from the Embuild federation, 57% of construction and installation companies have noticed a drop in the number of new interested contacts since the last quarter of 2023 and 24% have even noticed a sharp drop, whether for construction or renovation.
If this does not improve “rapidly”, 15% of companies in the sector expect to have to lay off one or more employees, warns Embuild. “We will not return to the situation before 2022, when borrowing money was almost free, with extremely low interest rates. So there is no point in waiting for interest rates to fall” , notes Niko Demeester, managing director of Embuild.
Especially since the surge in materials prices is behind us, just like that of real estate prices. “In other words, the stars are aligning to invest in construction and renovation,” he believes.
For the federation, a decision might clear its sky: that the federal government reverses its decision to maintain the VAT rate at 6% only for individual projects. “Indeed, major projects (from developers, editor’s note) are necessary for the extension and renovation of our very dilapidated housing stock. Individual demolitions-reconstructions are positive, but they are far from being sufficient to meet the challenges climatic and demographic”, insists Mr. Demeester. Currently, construction has 134,000 companies and employs 210,000 workers.
construction renovation bank loans
1705822751
#dont #improve #companies #lay #workers #construction #sector #pessimistic #start #year