The ministry reckoned it should be able to deliver around 1,000 affordable homes per year
Luxembourg is subsidising the construction of 3,600 “affordable” homes under construction, the housing ministry explained on Friday.
Funding of up to €550m from a housing development fund created in April has been made available to build the 308 projects which span 57 communes. The projects are jointly funded by The Société nationale des habitations (SNHBM), a structure for low-cost housing, which is responsible for the projects (34%), the Fonds de Logement (25%), communes (21%) and private actors and associations (20%).
Work on a further 4,000 housing units is expected between now and 2024 on former industrial zones, including in Wiltz and Dudelange, as well as other sites in Echternach, Kehlen, Mamer, Mersch, Diekirch and Luxembourg City.
The ministry reckoned it should be able to deliver around 1,000 affordable homes per year.
Housing has failed to keep up with demand in Luxembourg, pushing up house prices. According to data from March 2020, on average landlords charged €1,616 per month to rent an apartment, and €2,963 for an apartment, with rents considerably higher in the centre. Average asking prices for flats were €559,873 (a year-over-year gain of 15%) and for a house €882,099 (a 9% year-on-year rise), according to real estate platform Athome.