A ceremony was held on Friday to mark the completion of the structural works of the Roots building, a six-storey block offering 102 apartments at an average price of €8,000 per square metre.
The event, known locally as 'Straussfeier,' is a traditional milestone in construction marked by hanging a floral wreath on the framework. This particular ceremony gathered politicians, developers, investors, representatives of construction firms, and dozens of workers.
The Roots building stands adjacent to the iconic red office tower at Belval, an area that has seen the rapid emergence of new office and residential developments in recent years.
Simone Asselborn-Bintz, mayor of Sanem, described the neighbourhood as dynamic and envisioned it as a place where people will be able to live, work, exercise, and enjoy cultural activities, all within walking distance. However, during a tour of the site, it was noted that pedestrian traffic remains limited for now.
The mayor acknowledged this reality, expressing hope that the situation will improve as new transport links, such as the tram, are completed and as streets are redesigned to prioritise green spaces and pedestrian access on both the Esch-sur-Alzette and Sanem sides of the district.
She pointed to the adjacent park, which she said becomes lively and bustling at weekends.
The Roots project is the result of a partnership between Belgian developers: BPI Real Estate and Unibra, the latter known primarily as a brewery with significant operations in Africa and a sideline in property development. The developers purchased the land from Agora, while the state has, as part of its off-plan acquisition scheme (VEFA), bought back 30 apartments at a cost of around €20 million.
Minister for Housing Claude Meisch explained that the state's involvement is not simply to facilitate private developers' sales, but crucially to secure rental properties that can be offered at "very reasonable conditions". He stressed that the government sets strict limits on how much it will pay, always negotiating the terms to achieve the best value for public money.
The developers confirmed that, while they could have proceeded with construction even without the state's purchase of the 30 flats, owing to the financial backing of their parent groups and the Belgian KBC bank, such state acquisition presents a challenge for profitability.
Arnaud Regout of BPI Real Estate admitted the margins on these affordable units are thin to negative, meaning they must accept losses to repay loans, with little or no surplus for reinvestment.
Thibault Relecom, CEO of Unibra and son of the company's heiress, acknowledged the industry is facing challenges, but remained optimistic, highlighting the project's sustainable wooden construction and strong social mix as key positives.
To encourage investment in rental housing, Minister of Finance Gilles Roth and Housing Minister Claude Meisch introduced the Booster programme, which includes new tax incentives. However, Democratic Party (DP) MP Patrick Goldschmidt criticised the current ceiling of €600,000 for the 6% accelerated depreciation scheme.
Meisch responded that he opposes lifting the cap, arguing that most eligible rental properties fall below this threshold and, if not, are simply too expensive – developers, he said, must also bear some responsibility to keep prices accessible.
Meisch emphasised that the government remains cautious about tax incentives for investors in the rental market and continues to favour direct state acquisition of housing. With a budget of €480 million, the state has now secured more than 800 housing units to be rented out at affordable rates.
