Pirates MP Marc Georgen submitted a parliamentary question on the cost of the new, supposedly affordable apartments, citing examples such as a 50-m2 one-bedroom flat for €516,000, or a 59-m2 one bed at €617,000. At more than 10,000 euros per square metre, the party wonder how they can be described as affordable homes.
“This ‘affordable’ price per square metre is surprisingly high,” Georgen said, commenting that the flats were accompanied by a 99-year emphyteutic lease.
Online, the “Kiem2050" project purports to be a neighbourhood built with “an eco-responsible approach”, promoting car-less living thanks to its connection to the public transport network. It promises to supply “135 superb new homes, 30% cheaper than market prices.”
In response, the Minister of Public Works, Yuriko Backes, said the “Kiem2050" project was developed and marketed by a private developer in possession of the land’s long lease, despite the fact the project was initiated by the Fonds Kirchberg government office.
As for the price per square metre, the minister wrote that it could vary by “10% more or less”. She said the examples provided by the Pirate Party were “extreme” and only concerned a “few small dwellings” which were by nature more expensive per square metre.
“Three-bedroom apartments are sold at a price ranging between €7,147 and €8,559 per square metre,” Backes said. “The price of the land for the duration of the lease is already included, which explains the higher sale price” she added, clarifying that this “is not the case for public developers”.
As for the concept of “affordable” housing, the minister said the “Kiem2050" project does not fall within the framework of the government’s public affordable housing scheme. “The Fonds Kirchberg is not a public developer and does not receive any subsidies or funding from the government. Its activities must therefore enable it to generate sufficient resources to fulfil its “public utility mission”.
Backes said the pilot project was designed to help residents whose income exceeds the threshold to benefit from the government’s affordable housing scheme, but do not earn enough to find housing on the private market.
