Luxtoday

Those responsible for rising house prices have been found

Last time updated
19.07.23
Those responsible for rising house prices have been found

The investigation carried out by the Luxembourg anti-trust authority has attracted the interest of the Minister of Economy, Franz Fayot. On his Twitter account, the politician noted some curious facts. These facts reveal some of the causes of the real estate crisis in the country.

First of all, the minister pointed out that in ten years (from 2010 to 2020), promoters increased their gross profit by eight times, although the number of new houses remained at about the same level.

He also noted that 83% of all building land is owned by private companies. As a result, their speculation can lead to price changes. Franz Fayot noted that promoters often work in tandem, although they had to respect the rules of competition.

There were also suspicions that companies were purposely underpaying their employees in order to create labor shortages, slow down construction, and generate more interest. However, no direct evidence of this has yet been presented.

The results of the investigation will be presented to the Government Council. Franz Fayot also said that the work of real estate agents and promoters should be more transparent and better regulated.

Last time updated
19.07.23

Source: RTL

We took photos from these sources: house, apartments

Authors: Kadriia