The Secretary General of the Fondation Robert Krieps Max Leners has expressed his shock at the dramatic rise in housing prices.
The data published by Statec is clear: housing prices increased by 16.7 percent within one year. To illustrate this increase, a property worth one million euros today will cost more than 4.5 million euros in ten years. The secretary general Leners was shocked by this development and expressed his concerns for his and future generations.
The price of new apartments has increased by 14.4 percent on a yearly average, and old ones by nearly 16 percent. For houses, the price has gone up by 20 percent on average.
Leners calls for new regulations and points towards the 'Lex Koller' law in Switzerland. The gist of this regulation puts individuals looking for accommodation before investors. The housing minister is against such a law for now, but the LSAP is working on solutions.
One could consider giving people the choice. Either give up seven percent of the land value or they have to give the land to the Housing Fund. They can then build a mobile structure, says Max Leners.
Those who rent also suffer from the rising prices. Many tenants already have to put most of their income into housing. And with the rising rents, it becomes difficult if one has to move, according to Jean-Michel Campanella, President of the Tenants' Protection Association.
If the situation on the market were not so dramatic, people would be able to find a new flat if they no longer liked it. But finding and being able to afford a new flat makes it much more difficult.
That's why the Tenants' Protection Association regrets that the ban on evicting tenants has not been extended.