© Didier Weber
A recent study conducted by Luxembourg's National Competition Authority caused quite a stir as it raised several red flags regarding practices in the real estate sector.
On Friday morning, our colleagues from RTL Radio sat down for an interview with Pierre Barthelmé, the president of the National Competition Authority. This authority serves as the public body responsible for ensuring fair competition as well as the prevention of collusion and abuse of power among market players and companies in Luxembourg.
Their latest study delved into various aspects of the real estate sector, ranging from planning to construction. It has sparked outrage among certain players in the real estate sector, with some even going so far as to label the study's claims as "defamation."
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"No, the study was not commissioned by the Minister of the Economy," stressed Barthelmé, pointing out that the Competition Authority had already published its first study of public markets and the real estate industry in 2021. Barthelmé added that the authority operates independently, as mandated by law.
Barthelmé also addressed whether construction companies are deliberately keeping their employees' salaries low, as the most recent report suggests.
He explained that the matter came up due to the fact that there is a labour shortage, but salaries in the sector are among the third lowest nationwide. This discrepancy justifies raising further questions, according to Barthelmé.
Follow-up studies are currently underway that involve a closer examination of companies through a preparatory inquiry. However, detailed discussions on the matter will not be disclosed to the public at this stage.
