SNHBM has completed 250 apartments

The public property developer SNHBM increased its construction activity in 2024 compared to 2023. In 2024 the société des Habitation à Bon Marché completed 250 apartments (2023: 160), including 226 sales and 24 rental apartments. At the same time, the construction of 301 apartments was launched (2023: 230) and a total of 1,092 apartments were under construction (2023: 951) last year. This emerges from the 2024 annual report of the SNHBM, which was presented on Wednesday.

The completion of 350 new residential units is planned for 2025. In the medium term, this value should be increased to up to 400 units per year. Furthermore, the SNHBM would like to offer more cheap rental apartments.

Easy plus after loss of millions in 2023

In 2024, SNHBM’s sales were 144.8 million euros, which is an increase of 148 percent compared to 2023 (58.3 million euros). The developer concludes the year 2024 with a slight plus of 47,647 euros. In 2023, the SNHBM had to record losses of 5.4 million euros.

Since the income limit for buyers has been raised by state-subsidized apartments, according to the SNHBM, around 80 percent of the population of Luxembourg is currently fulfilling the prerequisites for the acquisition of an SNHBM apartment. For a household with two children, the income limit for an affordable apartment is 11,580 euros per month, for households without children at 7,550 euros per month.

According to the SNHBM, the sales figures have increased significantly compared to 2023 (93 apartments). How many apartments were sold last year does not show from the report. According to the SNHBM, existing properties were particularly in demand, more than new apartments.

The average sales price of an apartment was 4,600 euros per square meter. At the end of the year there were 7,675 people who are interested in buying an SnHBM apartment.

The inventory of rental apartments has risen from 483 to 548 apartments, currently there are 579 units. The average rent is 5.53 euros per square meter. At the end of the year there were 5,100 interested people on the waiting list for a rental apartment.

There are also 226 apartments that the state acquired as part of the VEFA purchase program. These are still under construction and are later managed by the SNHBM.

Property reserves range until 2031

According to the report, the SNHBM currently has a property reserve for 2,796 apartments. The aim is to start building 350 new apartments in the current year and to build 400 units per year in the medium term. The property reserve is expected to be sufficient by the end of 2031.