Construction: major urban projects at a standstill

A sector at the crossroads of urban planning and the economy

The construction and real estate sector in Brussels is an essential link in the regional economy and urban transformation. It employs tens of thousands of workers and generates considerable economic activity, in both new construction and renovation of the existing building stock.

Brussels urban planning relies on strategic instruments -- Master Development Plans (PADs), regional urban planning permits and infrastructure public contracts -- all of which require fully empowered political decisions. The absence of a regional government since June 2024 has frozen all of these mechanisms.

Master Development Plans: the strategic freeze

What is a PAD?

Master Development Plans are territorial planning tools created by the Brussels Code of Territorial Planning (CoBAT). They define the development framework for strategic zones at the regional level: land use, building density, public spaces, mobility and collective facilities.

A PAD commits the Region to a long-term vision for a neighbourhood or an urban hub. Its adoption is a major political act that requires a fully empowered government.

The frozen PADs

Several PADs are currently awaiting adoption or amendment:

• PAD Heysel: the redevelopment of the Heysel plateau, including the Neo project, is suspended. This project planned a congress centre, retail, housing and public spaces on one of the largest development sites in Brussels.
• PAD Gare du Midi: the transformation of the Gare du Midi area, one of the Region's most ambitious urban projects, cannot proceed. The PAD was to provide a framework for the reconversion of this strategic zone between rail mobility and urban renewal.
• PAD Delta: the development of the Delta-Herrmann-Debroux site, linked to the dismantling of the viaduct and the creation of a new neighbourhood, is on hold.
• PAD Casernes: the conversion of the former Ixelles barracks site into a mixed-use neighbourhood is blocked.
• PAD Mediapark: the redevelopment of the RTBF/VRT site at Reyers is frozen.

Each of these PADs represents potential investments of hundreds of millions of euros and the creation of thousands of homes and jobs.

Source: perspective.brussels, PAD progress report, 2025.

The consequences of immobility

The freeze on PADs has cascading effects:

• Legal uncertainty: developers and investors do not know which regulatory framework will apply to their projects
• Postponement of private investment: without an adopted PAD, private projects that depend on the regulatory framework are suspended
• Loss of attractiveness: Brussels is losing ground to other European cities that are moving forward on their urban projects
• Deterioration of sites: land awaiting redevelopment is degrading or remaining underused

Regional public contracts: hundreds of millions on hold

The scale of the freeze

The Brussels-Capital Region is a major client for the construction sector. Its public contracts cover:

• Mobility infrastructure: tramways, tunnels, major cycle paths
• Public buildings: schools, sports facilities, cultural centres
• Public spaces: squares, parks, roads
• Public housing: programmes of the SLRB, Alliance Habitat

Under a caretaker government, only maintenance contracts and prior commitments are honoured. New strategic contracts -- those requiring a political decision -- are postponed.

The Confederation Construction Bruxelles-Capitale estimates that hundreds of millions of euros in public contracts are awaiting launch. This freeze directly affects the order books of Brussels construction firms.

The domino effect on employment

The construction sector operates on long project cycles (2 to 5 years from design to delivery). The current freeze does not immediately translate into massive job losses -- ongoing sites continue -- but it creates a gap in the pipeline that will be felt from 2026-2027 onwards:

• Engineering firms see their commissions decline
• General contractors postpone their hiring plans
• Specialist subcontractors lose contracts
• Materials suppliers see demand fall

Urban planning permits: a two-tier system

What works

Urban planning permits falling under municipal authority continue to be issued. The 19 Brussels municipalities process permit applications for:

• Small and medium-scale projects
• Renovations of existing housing
• Local changes of use
• Neighbourhood retail fit-outs

Urban.brussels, the regional urban planning authority, continues to handle routine cases and requests for opinions.

What is blocked

Regional-scope urban planning permits -- those requiring a government decision -- are on hold:

• Major mixed-use projects (housing, offices, retail) on PAD sites
• Large-scale public facilities of regional scope
• Strategic projects linked to mobility or infrastructure
• Derogations from the Regional Land Use Plan (PRAS) for projects that deviate from existing zoning

Ongoing construction sites: continuity assured

It is important to note that projects with all permits and funding in place before June 2024 continue normally:

• SLRB social housing construction sites already under way
• Renovation work on Brussels tunnels (Bruxelles Mobilite programme)
• Metro 3 construction (federal/STIB responsibility)
• Private projects with all permits granted

Construction has not come to a halt in Brussels. But the renewal of the project pipeline is frozen.

Outlook: an accumulating urban debt

Urban planning is a long process. Decisions not taken today will have visible consequences in 5 to 10 years:

• Housing not built: each year of delay in adopting PADs pushes back the delivery of thousands of homes in a Region that desperately needs them
• Ageing infrastructure: investments not made in public facilities worsen the maintenance deficit
• Slowed energy transition: energy renovations of public buildings and new construction standards remain on hold
• Regional competitiveness: the accumulated delay in urban development affects Brussels' attractiveness for businesses and investors

The Confederation Construction Bruxelles-Capitale and perspective.brussels agree: each month of political immobility deepens an urban and economic debt from which the Region will take years to recover.

Sources: perspective.brussels, activity report 2025; Confederation Construction Bruxelles-Capitale, situation note; urban.brussels, permit statistics.