The government intends to buy portions of off-plan development projects. Construction projects often stall because only 10% to 30% of units have been sold off-plan, which is insufficient to secure financing.
However, this new approach could present additional challenges and raise legal and technical questions, according to Guy Entringer, director of the National Society for Affordable Housing (SNHBM). He made the comments on Wednesday morning during the presentation of the SNHBM's annual figures. Entringer said the organisation had not yet been consulted and had only "heard of various considerations". He agreed that it is "not great" when a project remains unfinished, but he also raised a number of questions.
First, he asked whether the State, the SNHBM, or the Housing Fund would become and remain co-owners, or whether they would be expected to resell individual homes. In the latter case, the question would arise whether the land share should be deducted upon resale to keep the home affordable.
If the State or public agencies remain co-owners, Entringer said, living together under a property management syndicate would pose a major challenge. "It is not always logical what might be decided there", he noted, "I think it is simply easier to manage when one owns an entire building than when one only owns individual homes."
Adjusting the price the State is prepared to pay per square metre for off-plan homes according to geographic location would, however, make "absolute sense", Entringer said, as prices vary immensely depending on the municipality. The underlying logic is that if the State is unwilling to pay a certain price, private developers will not sell at a loss. On the other hand, the State also does not want to finance excessive profit margins.
According to Entringer, SNHBM home prices are below market rates, though he admitted they are "not nothing". In principle, he said, "it is important that we achieve more density, because there is already not enough land available."
Entringer expressed regret that the buildings the SNHBM is constructing at Kennedy Sud in Kirchberg will look "very sparse" opposite the ArcelorMittal building. Nevertheless, he was optimistic about the future, pointing out that for the Elmen project, the section currently under construction will be 50% denser than the first phase, which has already been completed.
The low density of the first phase led to prices that would have been too expensive for everyone. "But we had to carry out the exercise in practice once", Entringer said, "to really show once and for all that things have to be done differently".
Presenting its annual figures on Wednesday, the SNHBM described 2025 as a "record year." According to the organisation, more homes were put into construction than ever before: 473 units were started – an increase of 172 compared to 2024 – and 288 were completed, up by 38 from the previous year. Overall, 1,335 homes are currently under construction, 613 of which are designated for rent, reflecting an upward trend. The SNHBM aims to double this number by 2028.
More than 8,000 people are currently on the SNHBM's waiting list to buy a property. The organisation has the land capacity to build 3,000 homes and plans to construct 350 to 400 units per year. To achieve this, it says land for future projects will need to be identified and the range of housing offerings diversified.
Major projects in the pipeline include 600 homes at Itzegerknupp in Bonnevoie and 230 homes at Kennedy Sud in Kirchberg. Another significant project is further off in terms of timeline: a "second Elmen" featuring 600 homes at Hierschterbierg in Roeser.
