The concrete ban in the Brussels suburbs is missing the mark and is having a detrimental effect on real estate prices, which are set to rise even further

“One in five mayors is calling for a moratorium on concrete construction,” the newspapers reported last week. This is a new development for Flanders, but not for the Flemish periphery around Brussels. Several municipalities there have already imposed a moratorium on concrete construction. They hope this will help keep their municipalities Flemish, green, and livable, but in reality, it often has the opposite effect. Thomas Valkeniers, CEO of Living Stone, explains why. 

The terms “concrete freeze” and “construction shift” are often used interchangeably, but they have different objectives. A construction shift focuses on two things: preventing further encroachment on open space and relocating new developments to already planned zoning areas. This requires a strategy that encompasses both the protection of remaining open space and the densification of existing urban centers. The construction shift, therefore, does not necessarily aim to limit the number of housing units, but rather to better organize land use. A“concrete freeze,” as implemented in the Flemish Periphery, on the other hand, does limit the number of housing units. The primary goal of this is to counteract further population growth in those municipalities.

It is essential to protect our open spaces by limiting further subdivision. However, this can only be successful if we also strengthen and densify our existing urban centers. The principle is simple: if you don’t want people to live side by side, you must give them the opportunity to live more on top of one another. Preserving open space therefore implies that you will have to allow taller buildings in urban centers. That is not so unusual and is not just a principle in Flanders. Studies show that, on average, buildings are 10% taller worldwide. This is even more necessary in regions where the population is growing.

The population is also growing in Flanders, leading to a shortage of housing units. This problem is exacerbated by the rise in the number of single-parent families and the aging population. Figures indicate that the shortage could reach as many as 300,000 housing units.

However, municipalities in the Flemish Periphery want to curb population growth by imposing a construction freeze. They are drafting new building regulations that are often so strict that permits are rarely granted and little construction can take place.

This has a negative impact on prices. When demand rises but supply does not, prices go up. It is in no one’s interest for real estate prices to keep rising. High prices in the suburbs are already leading to a housing crisis, with a shortage of “affordable housing” in both the homebuying and rental markets.

Although the concrete ban is intended to preserve the region’s Flemish character, it seems to be having the exact opposite effect. Due to the housing shortage and rising prices , young people are forced to move further away to other cities or municipalities. In fact, even people over 65 who want to move into an apartment cannot find what they are looking for in the suburbs, because new projects are not being approved. As a result, the native population is being displaced, and with the influx of mainly non-native speakers, the Flemish character of the region is diminishing.

In the long term, the concrete ban is detrimental to the prosperity of suburban municipalities. It effectively creates a glass dome over a municipality, bringing all activity to a standstill. Just like for a business, this is economically disastrous. Standing still is the same as going backward, even for a municipality. By placing a glass dome over it, you will no longer be able to attract economic activity, and existing businesses may move away. After all, as a municipality, you can no longer offer economic growth potential, which is desperately needed by businesses. This applies to both larger SMEs and the small baker looking to sell his rolls. That economic activity is also essential because it generates municipal tax revenue. With rising costs, municipalities will be able to invest less , leading to cutbacks in various areas, including the preservation of green spaces. Raising taxes will only cause a snowball effect and push the municipality further into a downward spiral.

It is understandable that suburban municipalities want to prevent uncontrolled urbanization. However, the solution does not lie in a construction freeze, but in a well-thought-out shift in construction that allows for limited demographic and economic growth. Municipalities that fail to recognize this risk being overruled by the Flemish government in the long run. After all, the government will have to respond to demographic growth and the shortage of 300,000 housing units. In that case, the suburban municipalities will have even less control over their urban planning policies.