RTL Today – Housing: IDEA analyzes the problems of the real estate market in Luxembourg

The latest publication from the Idea Foundation analyzes the housing situation in Luxembourg and calls for a debate on housing policies.

The publication was influenced by a recent survey which revealed that housing remains the main issue on the minds of Luxembourgers.

The state of the housing market is not really a surprise, believes Michel-Edouard Ruben of the Idea Foundation. The country’s policies have long tended to help people become homeowners. “The goal of having more homeowners has been achieved. But you can see there are huge tensions and so the promise that a majority of people should own property is now hard to keep as prices are so high and the interest rate goes up.”

In recent years, the policy focus has shifted to creating more affordable housing.

The foundation proposes a number of measures to improve the situation. On the one hand, the financial aid offered must evolve: “These aids are generally not linked to anything. Neither to the income of the beneficiaries, nor to the rents to be paid.

But the problem is much bigger than that, says Idea. A study on spatial planning to be published this autumn will explain that “a number of changes are needed in terms of spatial planning. For example around urbanization, mobility, and the way of working with the greater region.

So far, Idea has often been right in its predictions. In view of the multiple crises we are currently facing – war in Ukraine, inflation, energy security, climate – Michel-Edouard Ruben can only give an estimate of the direction we are taking in terms of housing.

Luxembourg is a rich and dynamic country, he says: “By definition, a rich and dynamic country is a country where housing is expensive. So I can safely assume that housing in Luxembourg will continue to be expensive.”

Idea wants to publicly discuss these issues with Henri Kox on July 6. To attend, you must register on their websitewhere you can also download their publication (in French).