For the past two decades, the Ministry of Housing has employed research as a cornerstone in its efforts to gain comprehensive insights into the Luxembourg property market, in a bid to enable more effective policymaking. The Housing Observatory, established precisely to serve this purpose, meticulously scrutinises housing prices, property plots, and land development prospects. A comprehensive review of two decades of research outcomes was unveiled on Thursday.
In collaboration with LISER, the Housing Observatory has been pivotal in analysing Luxembourg’s housing market. Minister of Housing, Henri Kox, stressed the indispensable role of research in shaping evidence-based policies. “To formulate policy rooted in factual data, research is imperative,” Kox asserted, adding, “this approach has enabled us to craft legislation that closely aligns with the prevailing realities. For instance, in addressing affordable housing, we have relied on their research-backed definitions, which have allowed us to gauge the financial burden placed on families seeking rental accommodations. This insight has propelled us toward refining our public sector housing initiatives. Our ambition is to expand our research into the latent potential of land for development.”
Kox highlighted the vast expanse of available land within municipal boundaries and identified mobilisation as a critical challenge. He underlined the need to pinpoint areas where legislative enhancements can unleash this potential, facilitating the construction of housing units essential for the country’s growth.
However, Muller also highlighted a concerning trend of diminishing ownership dispersion. “Over time, we have observed a growing concentration of property ownership,” she noted. “An increasing number of individuals find themselves excluded from the prospect of homeownership. Conversely, there is a rise in owners who possess multiple properties, including not just those who purchase properties to rent them out but also profit-driven investors.”
In addition to data collection and analysis, LISER emphasises the paramount importance of effective communication as an integral component of their mission.
