Sectoral plan: Consequences and challenges
September 16, 2014
Sectoral plan: Consequences and challenges of the modified law of the 30th July 2013
Over the course of thirty years, Luxembourg has experienced unprecedented economic and demographic growth. Despite the recession, property prices have not ceased to climb. According to Statec, the average price of an apartment has risen by 6.5% in the year 2013. Nonetheless, many disparities remain. Thus the centre and southern part of the country represent the most sought-after regions. The capital and its surrounding area make a large contribution to this rise in value. “In this region, the average price for apartments under construction has risen by 13.3% compared with the 3rd trimester of 2012 and those of existing apartments have risen by 7.5% over the same time-frame. On a national scale, the average price per m² for an apartment under construction has now reached 5,376 EUR/m2, versus. 4,192 EUR/m2 for an existing apartment,” according to Statec.
In view of these observations, the public authorities are implementing a sectoral plan so as to direct the creation of residential accommodation across Luxembourg territory as a whole and in specifically targeted priority municipalities. The idea is to develop the country’s urbanization in coherent fashion and to direct the construction of residential accommodation. Said construction will be partly left to private companies but some will also be taken over by the State for certain areas intended for large-scale projects. This plan is intended to take on a challenge facing Luxembourg: developing property in a sustainable, coherent and harmonious manner so as to guarantee levels of quality of life able to maintain the Grand Duchy’s reputation.
Over the course of thirty years, Luxembourg has experienced unprecedented economic and demographic growth. Despite the recession, property prices have not ceased to climb. According to Statec, the average price of an apartment has risen by 6.5% in the year 2013. Nonetheless, many disparities remain. Thus the centre and southern part of the country represent the most sought-after regions. The capital and its surrounding area make a large contribution to this rise in value. “In this region, the average price for apartments under construction has risen by 13.3% compared with the 3rd trimester of 2012 and those of existing apartments have risen by 7.5% over the same time-frame. On a national scale, the average price per m² for an apartment under construction has now reached 5,376 EUR/m2, versus. 4,192 EUR/m2 for an existing apartment,” according to Statec.
In view of these observations, the public authorities are implementing a sectoral plan so as to direct the creation of residential accommodation across Luxembourg territory as a whole and in specifically targeted priority municipalities. The idea is to develop the country’s urbanization in coherent fashion and to direct the construction of residential accommodation. Said construction will be partly left to private companies but some will also be taken over by the State for certain areas intended for large-scale projects. This plan is intended to take on a challenge facing Luxembourg: developing property in a sustainable, coherent and harmonious manner so as to guarantee levels of quality of life able to maintain the Grand Duchy’s reputation.