Construction Small and Medium Enterprise Insolvencies Surge Across Belgium
A total of 9,270 small and medium-sized enterprises in the Belgian construction sector ceased operations during the first half of 2026, marking a 14.6 percent increase compared to the same period in the previous year. Sector federation Embuild reported that this total included 1,538 formal bankruptcies.
Residential Construction Business Closures Outpace New Company Formations
Residential building and renovation segments face sustained economic pressure that makes businesses particularly fragile, according to Embuild’s market analysis. During the first six months of the year, new company formations in the residential segment dropped by 3.8 percent year-over-year, while activity cessations climbed by 13.6 percent. Concurrently, 7,545 new construction and renovation small and medium-sized enterprises launched operations, failing to offset the high volume of closures.
Non-residential construction and renovation experienced even sharper declines. New business creation in that category fell by 13.5 percent, whereas cessations surged by 21.7 percent. Infrastructure specialists followed a slightly different trajectory, with new business creation dropping 12.9 percent while cessations edged down 1.9 percent compared to the prior year.
Industry Demands for Government Intervention
Embuild managing director Niko Demeester warned that the sectorwide downturn threatens broader national targets. In raison de ce grave recul, nous sommes de moins en moins en mesure d’atteindre les grands objectifs en matière de logement, de rénovation et d’infrastructures que s’est fixés notre pays,
Demeester stated, pointing to the risk facing housing, renovation, and public works goals as reported by both Sudinfo and La Libre.
To reverse the contraction, the federation urged the federal government to integrate targeted stimulus measures into its upcoming budget. Proposed interventions include reduced value-added tax rates for constructing and purchasing a primary, single-family home, as well as for rental properties maintained for at least 15 years under specific floor-area standards.
Frequently Asked Questions About the Construction Sector Crisis
How many construction businesses went bankrupt in the first half of 2026?
Embuild reported that 1,538 construction small and medium-sized enterprises filed for bankruptcy out of 9,270 total cessations recorded between January and June 2026.
Which sector segment experienced the highest increase in business closures?
Non-residential construction and renovation recorded the steepest rise in business closures, with cessations jumping by 21.7 percent compared to the first half of 2025.
What specific tax changes is Embuild requesting from the federal government?
The federation is calling for a reduced value-added tax rate applied to the construction or purchase of a single primary residence, alongside similar tax relief for properties rented out for a minimum of 15 years.
Related reading