The Left Party (Déi Lénk) has called for a fundamental shift in Luxembourg’s housing policy, asserting that the 2024 housing roundtable has failed to yield any positive developments in the market.
The opposition party maintains that the housing crisis remains one of the country’s most pressing political challenges. Despite government pledges and various measures, the party argues that progress on the ground has been insufficient.
Speaking at a press conference on Friday, party representative and future MP Gary Diederich delivered a critical assessment of the roundtable’s outcomes. “Since the housing roundtable, practically nothing on the housing market has developed in a positive direction,” he said, arguing that neither the construction sector’s difficulties nor the broader housing crisis have been resolved. “Actual reality on the ground tells a very different story,” Diederich added.
According to the Left Party, the government has placed excessive emphasis on the private sector, with its measures failing to achieve the desired impact. Diederich pointed specifically to the increased accelerated depreciation rate of 6% for off-plan projects (VEFA), arguing it has failed to stimulate the market. He noted that current sales have plummeted to between 20% and 40% of pre-crisis levels, a problem compounded by the fact that construction volumes were already insufficient before the downturn. “Sales levels are not even half of what they were before the crisis, but we’ve wasted massive amounts of taxpayer money on this,” Diederich criticised.
The party also highlighted shortfalls in the state’s acquisition of housing projects. Of the €500 million allocated for this purpose, only around €221 million has been utilised so far, leading the party to suggest that the initiative has produced little more than an “announcement effect” rather than a genuine market revival.
Left Party MP David Wagner attributed these shortcomings to a fundamental flaw in the government’s approach. “The private market cannot solve the housing crisis because it prioritises profitability and not the needs of the people,” he argued.
In response, the Left Party is advocating for a complete policy reversal. A key demand is the introduction of a rent cap to provide immediate relief amid the ongoing crisis. Additionally, the party is urging the state to take a more active role in construction. It proposes the creation of a public construction company, which it argues would not only generate much-needed affordable housing but also help safeguard jobs in the construction sector.
