Exclusive interview with Claude Meisch, Minister for Housing

Claude Meisch, Minister for Housing and Town and Country Planning, looks back at the challenges facing the property market and outlines future directions.

Housing is one of the major challenges facing Luxembourg today. To shed some light on the current issues and gain a better understanding of future directions, atHome had the privilege of an exclusive interview with Mr Claude Meisch, Minister for Housing. He shares with us his vision and priorities for meeting citizens' expectations and keeping pace with developments in the property market.

What is your assessment of the current state of the property market in Luxembourg, and how do you see it developing over the last six months?

The Luxembourg property market has undergone a marked correction in recent years, with prices falling by around 15% between 2022 and 2023. Since 2024, we have seen a stabilisation and the first signs of a cautious recovery. This positive trend can be explained by two main factors: firstly, the strong measures introduced by the government to support households and revitalise the market; and secondly, the gradual easing of key rates by the European Central Bank. The volume of transactions has started to rise again, reflecting renewed confidence. However, dynamics vary according to region and property type.

On the rental side, the situation is broadly stable, with a moderate rise in rents for flats and a slight fall for houses. Today, the market is offering more opportunities thanks to a combination of falling prices, a significant increase in nominal incomes via the wage indexation mechanism (+15.9% since 2021) and the strengthening of public support schemes.

So we look to the future with measured optimism. The government's priority is to consolidate this trend so that it benefits all families and so that stabilisation translates into better access to housing for all our citizens.

At a time when certain forms of assistance have come to an end, is it worthwhile for future buyers to embark on a property project today, and what prospects would you give them?

Many households are legitimately wondering about the right time to embark on a property project. Today, the conditions for accessing property are more advantageous than they were at the peak of the price boom. After several years of intense pressure, the market is once again offering opportunities.

The temporary measures in the "housing package" came to an end on 30 June 2025, but the "Bëllegen Akt" tax credit has been maintained. Set at €40,000 per eligible person and therefore €80,000 per couple for the purchase of a main home, it provides tangible support and remains particularly popular with first-time buyers. Of course, you have to bear in mind that interest rates are still higher than they were between 2016 and 2022. But the trend is downwards, which gives us a positive outlook.

I would encourage all future buyers to contact the Guichet unique des aides au logement. Our teams provide advice to a large number of people every day and can draw up personalised simulations so that everyone knows exactly what their rights and options are.

The government will continue to work alongside households, and young families in particular, to make the dream of a home of one's own a reality in Luxembourg.

How can we encourage a recovery in the property market and a revival in the construction sector to increase the supply of new homes?

Revitalising the property market and the construction sector remains a national priority, because without new homes we won't be able to meet the growing demand. The country's demographic development is leading to growing housing needs. To meet these needs, we are acting on several levers. Firstly, the State is fully assuming its role as an investor. More than €900 million has already been earmarked for the construction of affordable housing, and a further €480 million has been earmarked for the acquisition of off-plan projects. These resources will support the construction industry and rapidly increase the supply of available housing.

Secondly, we are working to make procedures simpler and faster. The package of measures presented with my government colleagues aims to remove administrative obstacles while maintaining transparent, environmentally-friendly rules. The mobilisation of public and private land is another essential pillar. Finally, we are encouraging a greater diversity of solutions to increase the supply of housing: cooperatives, intergenerational housing, social rental management. This diversity of options means that we can better respond to the varied needs of the population and open up new prospects for the construction sector.

The aim is to create a collective dynamic between the State, local authorities, private players and associations, in order to build more, faster and in a more appropriate way.

What is your vision for the development of housing in Luxembourg and what are the main directions you would like to promote?

In the medium and long term, housing development in Luxembourg must guarantee every citizen access to decent, affordable housing, while building neighbourhoods that promote sustainability and social inclusion. This requires rigorous planning: giving priority to building where infrastructure already exists, optimising the use of land and encouraging mixed neighbourhoods, combining housing, jobs, leisure activities, shops, green spaces and public services. By way of example, the Elmen project, located in the Commune of Kehlen and developed by the public developer SNHBM, is the result of this approach.

Affordable housing must become a genuine factor of stability and confidence in the future. This will require a greater commitment from public developers, as well as from the voluntary and private sectors.

The State will continue to invest massively in affordable housing. But success will also depend on the joint mobilisation of local authorities, private investors, associations and civil society.

The challenge is immense, but it also represents a unique opportunity to shape towns and villages on a human scale, respectful of the environment and conducive to quality of life. It's a commitment to future generations, to ensure that Luxembourg remains an attractive, supportive and sustainable country where everyone has their place.

Is there a particular subject you'd like to talk about or a follow-up question you'd like to answer?

Housing is not just about figures or plans; it is above all a meeting of minds between projects, life paths and committed players.

This is exactly what the Semaine Nationale du Logement (National Housing Week) highlights, and over the years it has become a key event for anyone interested in the Luxembourg property market.

During this event, future buyers, tenants, public and private developers, banks, insurance companies and players in the affordable housing sector come together in one place. This concentration provides an opportunity to discover a multitude of concrete projects, to obtain personalised advice and to gain a better understanding of the public assistance available from the State. For many households, this is a key moment to compare, ask questions and find solutions tailored to their reality.

Beyond its practical aspect, National Housing Week illustrates the collective commitment to more accessible, diversified and sustainable housing. That's why the Ministry of Housing and Spatial Planning is present every year with a stand dedicated to providing information, particularly on individual housing grants.

This event is not just an exhibition, but a showcase and a major meeting point for thinking about and building the future of housing in Luxembourg.