Single parents are dealt with priority in the event of an apartment
In July 2023, the parliament voted changes to the law on affordable living space (Logement Abordable). Now the law is adjusted again. On Friday, housing construction minister Claude Meisch (DP) presented the innovations.
The new law is intended to introduce new criteria to award affordable apartments, with single families a special priority being granted because they are most affected by poverty and social exclusion.
Private real estate developers become impatient
The government wants to financially support social developers if they renovate existing buildings. They wave up to 15 percent more funds. The aim is to have a comprehensive renovation and energetic renovation to reduce CO₂ emissions as well as to reduce heating costs and thus also the additional costs for the tenants.
More support from the state for the acquisition of building land
The state wants to help social developers if they acquire building land in order to build affordable apartments there, financially more. To do this, the country is divided into different zones – depending on the average property price and location. More funding money should then flow in more expensive areas. As a result, social developers can also build apartments where they were previously excluded due to the high building land prices.
When municipalities build affordable apartments, the state pays up to 75 percent of the costs. In the future, they should be supported even more, and the legal text provides that the municipalities receive additional remuneration for their own contribution, i.e. for the remaining 25 percent self -investment. This remuneration is paid over the entire term of the agreement – usually over 40 years.
Furthermore, the law on the individual housing aids (e.g. rent subsidies), which was also adopted in July 2023, will be adapted. The procedure is simplified as the recipient no longer has to report any change in income, which often caused payments to be stopped. In the future, for example, the income situation should only be checked once a year. This creates security for the recipients and relieves the administration.
VEFA segment is booming: sales almost quadrupled
Since March 2025 you can upload documents to Guichet.lu, even without a Luxtrust certificate. So far, this only applies to existing applications. A comprehensive digitization of all processes is elaborated.
Fund du Logement should become more efficient
The law also provides for changes to the state developer Fund Du Logement, including the modernization of governance with a third deputy director and additional activities such as the renovation of land for housing, the creation of parking spaces near the apartments and the renovation of old buildings. These changes should make the fund more efficient.
