In an exclusive interview with News352, mayor of the City of Luxembourg, Paul Helminger returned to the subject of  exorbitant housing rental prices in the capital. It is now affordable social housing (state supported housing) for families that the City wants to develop.

"We are already a city with over a third of all social housing in the country," said Paul Helminger in an exclusive interview with News352. "Indeed, in Luxembourg there are over 600 houses of this kind really intended for people who are not well off”.

A fact sufficient for the mayor of the capital to believe that the the city responds quite well to soaring property prices. 

You may recall that according to the l'Observatoire de l'habitat in the fourth quarter of  2009, purchasing an apartment in Luxembourg cost on average 4,757 euros per m2 compared to 3,494 euros per m2 in Esch-sur-Alzette, for example. This makes the capital the most expensive commune in the Grand Duchy.

280,000 to 380,000 euros for a home.

However, Paul Helminger does not remain inactive. To attract young families, the commune wants to develop the idea of housing "at affordable prices”  that is to say comfortable homes between 3 and 4 rooms at a maximum price of 380,000 euros. A good price when you consider that on average cost is still, according to the l'Observatoire de l'habitat, is between 410,000 to 670,000 euros to acquire this kind of property in the capital. 


But how will the City of Luxembourg be able to offer these prices? It will stipulate to promoters, land developers,  constructors of apartments etc that they must meet strict conditions for resale. Luxembourg City virtually “neutralises” the cost of the land where construction takes place which, according to the mayor, "accounts for slightly over 40%" of housing prices.