Affordable housing for Luxembourg

Tim Harrup

The strategy of the Luxembourg government will give rise to some 18 large scale projects. These will be located in several parts of the Grand Duchy, including of course Luxembourg City, but also, for example, Dudelange and Wiltz. When other projects already started are added, as points out, such as Elmen at Kehlen and Wunne mat der Wooltz at Wiltz, the total of new social and moderate cost housing units reaches 5,133. A government report concludes that the requirement for new housing, in view of population growth, now lies at 5,600 to 7,500 units per year.

To sustain all of this, the ‘Special Fund for Housing Development’, launched in 2020 to do exactly what it says, has already allocated 96 million Euros. This is set to double in five years in view of agreements with developers already reached. And going beyond the 4,000 units mentioned, a final figure is likely to be over 8,000. As this housing is subsidized, the question of affordability for the least advantaged households has been considered. Henri Kox a Luxembourg minister, member of the déi Greng political party and an expert in housing, states that it is expected that the monthly cost of these units for such families will fall between 10% and 35% of their revenues. Remaining with housing which falls under the umbrella of the Housing Fund, in 2020 there was an almost even split between those which were sold and those which were rented.