The fee should normally be paid by the seller of the house or flat sold, explains Fayot in an interview with RTL, however he says that “it’s clear that this is included in the sales price”. This means that the added cost befalls the buyer instead, a fact Fayot considers “a deregulation, a disfunction of this market”.

The minister hopes to target this commission fee with the help of a grand ducal regulation, though he needs to check the technical and legal feasibility of such a measure first.

An additional tool to counter the housing crisis?

“Over the last 10 years, we’ve seen an immense evolution in the prices of houses and flats (in Luxembourg),” argues Fayot. The prices have nearly doubled over that area, . Between 2005 and 2019, the added value brought in property management and real estate businesses grew from €234m to €838m, and the number of employees in the sector grew from 1,686 to 3,656.

While the real estate sector remains a lucrative business, the government shared last year that more than a third of households % of their disposable income on housing, while 21,000 households ¨ towards rent.

Fayot’s suggested measure is one of the many recent initiatives presented by the government as it tries to tackle the housing crisis in Luxembourg. On 6 January, the government presented to give better and fairer access to accommodation. The focus was put on more state-owned property, investment into affordable housing projects and a reform of individual housing aids.

Delano has contacted the real estate chamber for a comment.