Real Estate Blog

Housing in Luxembourg: too scarce, too expensive

April 21, 2017

At the end of March, the popular Christian Social Party stated loud and clear that the housing situation in Luxembourg has become extremely worrying. Going by population forecasts expected in the coming years, Luxembourg doesn’t offer enough housing to accommodate everyone.

A special parliamentary commission has studied the matter. In particular, they seek to balance supply and demand with the aim of putting a stop to soaring prices.

But the backlog is huge. It was predicted that 6,500 houses were to be built in 2010 but only 2,600 were erected. Since then, the backlog has continued to grow year after year.

And despite a 40% increase in houses being built in the last 3 years, prices are continually rising. It’s a time when supply will remain inferior to demand, this isn’t going to change.

The president of the Special Housing Commission has demanded that procedures are simplified for building houses in the private sector, the aim being to build accommodation more quickly. From 1st April, the Omnibus law should allow the process to speed up.

But some MPs continue to grit their teeth and point the finger at the Luxembourg state who they deem too lax and too passive when confronted with this housing shortage and the Grand-Duchy housing situation.

What will the younger generations do if they want to settle in Luxembourg? What are the million inhabitants expected by 2030 to be faced with? To succeed in accommodating everyone without raising the cost of living, efforts must be made, starting now.


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