Housing and the Luxembourg Promise

Once upon a time, moving to Luxembourg meant more than just securing a job—it meant securing a better life. Luxembourg was a place where you could find a well-paid job and enjoy an affordable, high quality of life. Housing was part of that promise.

But what about today?

What is the promise of Luxembourg now?

For many, the "Luxembourgish promise" has shifted. You don’t move here for a well-paid job anymore—you move for a job. A job that might cover your home. And then you need that job to keep paying for the house, often with little left for anything else. It’s not the same as it was before. The housing market has completely escaped us, and the era of the Luxembourgish eldorado is over.

We’ve reached a tipping point where young people are rethinking their choices. It feels almost absurd when you’re faced with spending €700,000 for a studio apartment in Luxembourg City, knowing that you could buy a chateau an hour outside Paris for the same price.

So what can we do?

We need to make Luxembourg’s quality of life extraordinary again.

This isn’t just about building more homes; it's about creating a future that makes people want to stay, live, and thrive. Because if we don’t act soon, the very fabric of what made Luxembourg special will begin to unravel.

Luxembourg still has incredible potential, but we need bold action to restore the balance between opportunity and quality of life. And it starts by addressing this housing crisis head-on.

A recent report revealed that between 2004 and 2022, Luxembourg only built 64,000 housing units—far below the 7,500 homes we need every year just to keep prices in check. This shortfall has put a strain on the market, driving prices up and pushing young people and families out.

If we want to secure our future, we need to build a lot more—and fast.

But building more isn’t enough.

We need to ensure that what we build reflects the kind of Luxembourg we want for future generations. This means sustainable, well-designed neighborhoods that don’t just provide housing but also enhance the quality of life for everyone who lives here.

We should be thinking about urban planning that incorporates green spaces, community living, and accessibility—an architecture that’s as beautiful (yes, I dare say it!) as it is functional.

To achieve this, we must listen to our best experts—urban planners, architects, environmentalists, and, most importantly, our people—to guide us in creating a Luxembourg we can be proud of. One that preserves its heritage while embracing innovative solutions.

A Luxembourg that offers an outstanding quality of life and becomes a model for urbanism done right.

If we act boldly, we can bring back the promise of Luxembourg and ensure that it remains not just a place to work, but a place to truly thrive.

Have a great start to your week,

Christos FLOROS

(P.S. I will be starting a Housing Team within DP International, and if some of you have ideas or expertise to offer, I want you there!)