Luxembourg accelerates the purchase of affordable housing

Luxembourg continues to invest heavily in the affordable housing market using the VEFA (vente en état futur d'achèvement) mechanism - the acquisition of property during the construction phase. The latest transaction is the purchase of 80 flats in the IDESYA project by developer Eiffage Real Estate - Perrard, located in Esch-Belval, for an amount of €49,225,200.22. The property is expected to be completed by the end of 2028.

This project is located in a strategically important area - in the south of the country, close to key infrastructure, transport and basic services - and is fully in line with the objectives of the Spatial Development Programme (PDAT). It illustrates the authorities' priority to concentrate new housing where it will be most needed and effectively integrated into the urban infrastructure.

The VEFA programme covers the period 2024-2027 and involves the purchase of around 800 flats with a total value of 480 million euros. It allows not only to rapidly increase the public housing stock, but also to stimulate the market for new buildings, while maintaining control over their social orientation.

Thus, more than 60% of the programme budget has already been used, indicating a high rate of implementation.

VEFA is not only an economic instrument, but also a political statement: the state abandons the role of a passive observer in the property market and becomes an active participant, influencing the supply, prices and structure of housing. This is particularly important in a context where property affordability in Luxembourg remains one of the most pressing social issues.