Private developers feel disadvantaged when selling cheap apartments
People who want to have access to cheap living space must meet certain conditions. One of them is the income limit that must not be exceeded.
However, the real estate chamber now sees a clear disadvantage for private developers compared to the public builders in relation to the sale of cheap apartments. She speaks of « Inégalité Devant La Loi » and has therefore already contacted the Ministry of Housing, with the request that, as spokesman Jean-Paul Scheurs says, this, as spokesman says, to clear up inequality.
Private real estate developers become impatient
What is it about? The maximum income limits for public builders were increased in the course of a change in the law in 2023. In practice, this means that more households are suitable for a state -subsidized apartment than before.
Strict rules apply to private developers. According to Article 29 of the State Planning Act, residential projects with more than 25 units must be reserved for ten percent for the construction of affordable apartments (logements à Coût Modéré). The property developers may only sell these apartments to households who have access to the state acquisition premium (Prime d’Accession à la propriété).
However, lower income limits apply here than in public builders. In practice, this means that public developers have more potential customers than private developers. According to Jean-Paul Scheuren, the difference in the income boundaries for apartments « à Coût Modéré » is 20 percent.
Because building the house is expensive, buyers hesitate to acquire real estate
In addition, in the course of the amendment of Article 29 to the State Planning Act in November 2024, the income limits for access to cheap living space are no longer regulated uniformly, but are defined in the execution agreements (Convention d’E Exécution) between the municipalities and the builders.
The income limits for buyers can vary depending on the municipality and the project. This flexibility was introduced to better take the local conditions into account.
In this case, the ministry does not see a distortion of competition or unequal treatment before the law.
Ministry of housing
Scheuren speaks of distortion of competition and wants the same conditions to apply to public and private developers in relation to the sale of cheap living space.
Ministry cannot determine unequal treatment
However, the Ministry of Housing sees it differently. When asked that the ministry has stated that the real estate chamber had to be separated between « Logements à Coût Modéré » in accordance with Article 29 of the State Planning Act and « Logement Abordables » in accordance with Article 29 to of the same law.
If you buy an apartment « à Coût Modéré », you will – with state help – owners of an apartment including the property that can later be sold freely at the real estate market. The “Logements Abordables” are apartments that are sold as part of a leasehold – without a property – and remain permanently part of the public, affordable housing offer.
Why is the income limit for apartments without a property higher than for apartments with property? Actually, it should be the other way around.
Jean-Paul Scheuren
Spokesman for the Chambre Immobilière
« In this case, the ministry does not see a distortion of competition or unequal treatment before the law and has also communicated this to the Chambre Immobilière, » says the Ministry of housing.
Jean-Paul Scheuren cannot understand that. « Why is the income limit for apartments without a property higher than for apartments with a property? Actually, it should be the other way around. That is not logical. »
According to Scheors, private developers remain on their affordable apartments because the buyers do not meet the criteria, i.e. earn too much, « but not too much to buy the apartments from public developers ». This is all the more unfair « when public developers get numerous help from the state and are freed from many taxes ».
