Luxembourg's parliament has approved a legal amendment requiring higher proportions of affordable housing in new developments, with the changes set to take effect from January 2026.
To increase the availability of affordable housing, Luxembourg's parliament approved an amendment on Tuesday to Article 29bis of the Housing Pact 2.0. This change will require a greater share of affordable housing units in future construction projects, as explained by bill rapporteur Stéphanie Weydert from the Christian Social People's Party (CSV).
The MP outlined that for Particular Development Plans (PAPs) involving more than ten residential units, 15% of the units must be affordable. The requirement rises to 20% for areas already zoned as building land, and for newly rezoned land or areas identified as priority housing zones under the sectoral housing master plan, it increases further to 30%, she stated.
These measures are expected to lead to the creation of around 3,600 additional affordable homes in new developments. Including land under deferred development zones, the number could reach approximately 5,600.
Additionally, municipalities will be granted the power to impose stricter limits on parking spaces in new neighbourhood plans. In future, each affordable housing unit may be allocated only a single parking space.
The new regulations will take effect on 1 January 2026 but will not apply to development plans that have already entered the approval process. The bill passed with 54 votes in favour; The Greens (Déi Gréng) abstained and the Left Party (Déi Lénk) voted against it.
