Luxembourg City will tackle its housing crisis by purchasing five new projects, aiming to increase its municipal housing stock by a quarter.
According to Mayor Lydie Polfer, the projects in question are in the Dommeldange, Cents, Eich, and Bonnevoie districts.
This encompasses a total of 244 apartments and ten flat shares offering nearly 100 rooms, all designated for rental purposes. For this acquisition, the City of Luxembourg is committing a substantial investment. According to Polfer, "In total, it amounts to over 200 million euros, precisely 210 million euros, to be exact."
However, exact contract details still have to be negotiated, a process expected to last until early 2024.
Only five projects shortlisted
The municipality of Luxembourg City received a total of 15 offers, of which only five were shortlisted for fulfilling the necessary criteria. City officials set the maximum square-metre price for land at €4,000 and the one for living space at €5,800.
To facilitate management of the properties, the municipality also decided to become the sole owner of the projects in question. Once completed, the accommodations are set to raise the housing stock owned by the City, currently at 879 units, by 25%.
Mayor Polfer underlined the importance of creating new perspectives amid the ongoing construction crisis in Luxembourg.
The government is meanwhile set to buy 114 apartments across the Grand Duchy from private developers for €69 million.