Building permits in Luxembourg fell by 44% last year, having a profound impact on the property sector, according to Statec. Photo: Shutterstock

Building permits in Luxembourg fell by 44% last year, having a profound impact on the property sector, according to Statec. Photo: Shutterstock

“In 2023, authorised surface areas and dwellings continued to decline.” The construction sector saw a 44% drop in authorised floor space in 2023 versus 2019, according to the national statistics bureau.

The granting of building permits continues its downward trend: between 2019 and 2023, surface area authorised for building fell by a whopping 44%, or 2m square metres to 1.1m, according to a Statec report from 5 March 2024. The decline extends to both the residential and non-residential sectors, with falls of 41% and 44% respectively in authorised floor space.

This trend is particularly marked for single-family homes. In 2023, just over 1,000 single-family homes were approved for construction, representing a fall of 28% compared with 2019--or 400 fewer single-family homes.

For independent living spaces inside (e.g. apartments) inside buildings, the report records an 18% reduction across the years studied: almost 3,200 such spaces were authorised last year, about 700 fewer than in 2019.

The number of total dwellings (houses and independent living spaces) authorised thus comes in at about 4,450, similar to what we had in 2015. At that time, however, Luxembourg’s population was around 560,000, whereas on 1 January 2023 it was 660,000.

There are regional disparities, the report also found. Luxembourg City and the canton of Esch-sur-Alzette recorded increases in construction of 18% and 32%, respectively, representing 140 and 280 additional homes. However, these increases remain negative compared with 2019, with falls of 12% (Luxembourg) and 17% (Esch).

This article in Paperjam. It has been translated and edited for Delano.