Luxembourg City

Luxembourg City

Unlisted Orgs
Population (AI)

125,000

Enrich by AI!
Last edited
Sep 30, 2024 10:04 PM
Category
Capital
Local programs

**Luxembourg City's Affordable and Sustainable Housing Targets:** 1. **Increasing Affordable Housing Supply:** - The Housing Pact 2.0 aims to increase the supply of affordable and sustainable housing by mobilizing existing land and residential potential and improving residential quality. - At least 10% to 20% of the gross built area in new development plans (PAP NQ) must be reserved for affordable housing, depending on the size of the project and the classification of the land. 2. **Sustainable Urban Planning:** - The city promotes environmentally friendly urban planning through the Environmentally Friendly Urban Planning Guide, focusing on 15 themes related to the United Nations Sustainable Development Goals. - Projects like the Neischmelz project in Dudelange aim to create carbon-neutral, environmentally friendly neighborhoods with a focus on community involvement and sustainable living spaces. 3. **National and Local Collaboration:** - The Luxembourg government has introduced tax incentives to revitalize the housing market, including increased tax credits for home purchases and rental properties, and fiscal neutralization of nonspeculative capital gains reinvested in sustainable housing. - The city collaborates with national programs, such as the Recovery and Resilience Plan (RRP), which allocates €93 million for projects including the construction of at least 1,200 affordable housing units between 2022 and 2025. These initiatives aim to make housing more affordable and sustainable, aligning with broader European goals for green and social housing.

Housing Market

**Summary of the Housing Market in Luxembourg City:** The housing market in Luxembourg City is experiencing a recovery phase after a challenging 2023. Despite a decrease in real estate prices in the second quarter of 2024, with apartment prices down by 3.3% and house prices by 4.9%, the market is expected to stabilize and grow in 2025. - **Median Price per sqm to Buy:** The average selling price for apartments in Luxembourg City fell by 8.72% to €7,802 per square meter in Q1 2024. - **Median Price per sqm to Rent:** Rents for medium to high standard accommodation in Luxembourg City range from €1,500 to €2,000 for a one-bedroom apartment and from €2,100 to €2,600 for a furnished 2-bedroom apartment (excluding utilities). - **Total Number of Housing Units:** Specific data for Luxembourg City is not provided in the sources, but the total number of dwellings in residential buildings with approved permits in Luxembourg rose by 39.3% y-o-y to 1,470 units in Q1 2023, with Luxembourg City seeing a surge of nearly 120% y-o-y to 323 units. - **Ownership vs. Rental:** Detailed statistics on ownership vs. rental rates are not available in the provided sources. - **Public, Social, and Cooperative Housing:** The Housing Pact 2.0 aims to increase the supply of affordable and sustainable housing, mobilize existing land and residential potential, and improve residential quality. However, specific figures on the share of public, social, and cooperative housing in Luxembourg City are not provided.

Further Actors?

**Key Conversation Partners and Collaborators for Affordable and Sustainable Housing in Luxembourg City:** 1. **Academic Institutions:** - University of Luxembourg, particularly the Faculty of Humanities, Education and Social Sciences, which could provide research insights on sustainable urban development. 2. **NGOs:** - Fonds du Logement (Luxembourg Housing Fund), focusing on affordable housing initiatives and innovative living solutions. - Non-profit organizations managing social rental of co-living spaces. 3. **Local Political Parties:** - Parties with a focus on urban development and sustainability, such as the Green Party (Déi Gréng). 4. **Local Administration:** - The Ministry of Housing, which oversees housing policies and projects like NeiSchmelz and Metzeschmelz. 5. **Impact Investors:** - Companies like Immobel, which invests in sustainable and affordable housing projects like Kiem 2050. 6. **Real Estate Developers:** - AGORA, known for developing innovative neighborhoods like Belval and Metzeschmelz with a focus on affordable housing. - Immobel, with projects like Kiem 2050 that combine sustainability and affordability. 7. **Architecture Firms:** - Firms specializing in sustainable and eco-friendly designs, such as those involved in the Kiem 2050 project. 8. **Housing Cooperatives:** - Cooperatives that manage and develop affordable housing projects, often in collaboration with NGOs and local authorities. 9. **Modular Housing Providers:** - Companies like Karmod, which offer modular and prefab housing solutions for affordable and sustainable living.

Cooperatives

In Luxembourg City, housing cooperatives play a crucial role in addressing the housing crisis by offering affordable and communal living options. These cooperatives are organizations that create and manage housing collectively, emphasizing self-help and self-responsibility. The city has seen a growing interest in housing cooperatives, with initiatives like Adhoc, Luxembourg’s first non-profit housing cooperative, promoting ecological and socially oriented housing projects. However, these cooperatives face challenges such as financing difficulties and limited land availability. The city supports cooperative housing through various programs. For example, the City of Luxembourg offers long-lease properties for sale and provides financial aid for building or purchasing homes in certain circumstances. Additionally, participatory housing syndicates have been established, allowing groups of people to live in community at a lower cost and design their own spaces. While there is no specific data on the market share of housing cooperatives in Luxembourg City, recent projects and initiatives indicate a growing trend towards cooperative housing. For instance, Adhoc has been working on promoting social and ecological housing projects, despite facing challenges such as the shutdown of a pilot project in Kirchberg. Overall, housing cooperatives in Luxembourg City aim to provide sustainable and inclusive housing solutions amidst the city's housing crisis.