Earlier this week, the government announced measures to revitalise the construction industry, which were well-received by the Luxembourg Employers’ Association(UEL), the Luxembourg Real Estate Chamber (Chambre immobilière) and the Foundation for Access to Housing (Fondation pour l’accès au logement), which rents out and builds social housing under the social promoter Abitatio.
Jean-Paul Scheuren, president of the Real Estate Chamber, said he was more optimistic than ever about the sector’s outlook, as the government’s measures would create further demand.
“The government has done its part, now it is up to us to put projects intended for sale on the market and invite buyers to take advantage of the measures this year. We expect to see a dynamic change over the coming weeks, otherwise we’ll eventually do a relaunch.”
Scheuren said there had been no major foreign investors in the Luxembourg market to date, but that did not mean this would always be the case.
“We really feel that this government is a pro-investment government, which could attract attention from abroad. Not just for housing, but in general, the government is prioritising economic activity, and therefore would be likely to welcome investors coming to Luxembourg. An important element here is the people’s trust in the government and in our country.”
Scheuren and Gilles Hempel, director of the Foundation for Access to Housing, both expressed satisfaction at the quick action shown by the government in deciding these measures, even though they will take time to have an effect on the sector.
“Of course these measures need to have an effect first. Projects planned today will take a while to come to fruition, but it is good that the government has indicated the intention to buy more off-plan properties (VEFA). This will help to create more housing, but will also guarantee employment in the construction sector. These are people who have a job today but if they lose it tomorrow, they will become our customers, and we don’t want that.”
Hempel also welcomes the increase in the tax exemption from 75 to 90% for rental management and the increase in rent subsidies, although he believes the government could have gone further. He described these measures as a good start, however, as renters are the ones suffering the most in the real estate market.
