The lack of available housing in Luxembourg has led to steep house prices, leaving many unable to afford their own home.
A new study by researchers at the University of Luxembourg has pinpointed the reason behind the country’s housing affordability crisis. According to the report, property developers and landowners knowingly develop a minimal amount of land – far less than they could – in an attempt to maximise wealth.
In an interview with RTL, Luxembourg Institute of Socio-economic Sesearch and London School of Economics researcher Antoine Paccoud explained that the proportion of land set aside for constructing houses represents a minimal percentage of that which is available to developers and private landowners. This is a strategic decision, according to Paccoud, as less than 0.1% of the population owns around half the available land in the Grand Duchy. The amount of state-owned land in comparison, for example, is extremely low.