Want to make renting in the Grand-Duchy easier? Zoom in on the government's ambitious plan.
October 27, 2017
Finding housing in Luxembourg requires such a substantial budget that it is sometimes difficult to obtain. This is why a significant number of individuals prefer to live just outside the borders.
However, the Luxembourg government is dealing with the problem and is seeking to make access to rental housing easier, in order to encourage more people to live in Luxembourg.
This is why the government is looking to have housing built that will rent for about 10 euros per square meter, in other words 30 to 40% less than the present market price.
This project is possible thanks to the cooperation of three public agencies: the Ministry of Housing, the Housing Fund and the Compensation Fund.
The Compensation Fund will be the owner of the building under construction, through a 20-year agreement signed with the "Social Housing Agency", which will be in charge of renting the units after they are built. This process will ensure that the investor--in this case, the Compensation Fund--will receive the regular payment of rents as well as a return of 2.5% for the life of the agreement.
This moderate rent lies between subsidized rent rates and rent in the private market. This model aims to meet the needs of a demographic not eligible for subsidized housing because their income is too high, but who cannot pay rent in the private market.
Grevenmacher, northeast of the City of Luxembourg, is the location of the first building to be constructed: a building with 23 units from 64 to 93 meters, spread over 4 floor. Parking spaces are also planned for each apartment.
We can foresee that other projects will take shape after that. In the future, this could also be of interest to the private sector, which could see an advantage in investing in this kind of project promising a return rate of 2.5%.
You can find more information about this project on the Ministry of Housing site.
See all of our rental housing advertisements at our portal IMMOTOP.LU.
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However, the Luxembourg government is dealing with the problem and is seeking to make access to rental housing easier, in order to encourage more people to live in Luxembourg.
This is why the government is looking to have housing built that will rent for about 10 euros per square meter, in other words 30 to 40% less than the present market price.
This project is possible thanks to the cooperation of three public agencies: the Ministry of Housing, the Housing Fund and the Compensation Fund.
The Compensation Fund will be the owner of the building under construction, through a 20-year agreement signed with the "Social Housing Agency", which will be in charge of renting the units after they are built. This process will ensure that the investor--in this case, the Compensation Fund--will receive the regular payment of rents as well as a return of 2.5% for the life of the agreement.
This moderate rent lies between subsidized rent rates and rent in the private market. This model aims to meet the needs of a demographic not eligible for subsidized housing because their income is too high, but who cannot pay rent in the private market.
Grevenmacher, northeast of the City of Luxembourg, is the location of the first building to be constructed: a building with 23 units from 64 to 93 meters, spread over 4 floor. Parking spaces are also planned for each apartment.
We can foresee that other projects will take shape after that. In the future, this could also be of interest to the private sector, which could see an advantage in investing in this kind of project promising a return rate of 2.5%.
You can find more information about this project on the Ministry of Housing site.
See all of our rental housing advertisements at our portal IMMOTOP.LU.
Other recent articles:
Everything you need to know about renovating or transforming your home!
Visit Luxembourg from the water
Luxembourg investment guide: location, type of property, budget?
Get your mortgage loan in a secure manner!