Read the full newsletter here

‘Build more homes, efficiently and in suitable locations’

Winner of the LuxReal Award in the ‘Institutionals’ category, Marie-Josée Vidal discusses the national challenges related to housing. 
As Chef de Cabinet of the Ministry of Housing and Spatial Planning and President of Agora, she emphasizes the need to build more and better, to innovate, and to collaborate more effectively in order to create a resilient, inclusive Luxembourg where everyone has a place to call home.

Marie-José Vidal
Chef de Cabinet - Ministry of Housing and Spatial Planning
President – Agora

By 2025, data and forecasts suggest that Luxembourg’s real estate market is expected to stabilize, though housing affordability will remain a challenge. The government has already introduced significant measures to improve the housing market, with additional initiatives on the horizon.

Streamlining administrative processes

Boosting affordable housing and supporting the construction and real estate sectors are essential drivers of sustainable urban development. One key strategy is to streamline administrative processes by introducing well-defined and targeted measures aimed at simplifying procedures.

An innovative approach to housing development is being adopted, with notable projects currently underway. NeiSchmelz in Dudelange, for example, is transforming a former steel site into a modern, ecological district with 1,575 affordable housing units. Similarly, Wunne mat der Wooltz in Wiltz will add 1,085 units. These projects reflect a forward-thinking vision for a more balanced and sustainable housing market.

Unlocking the potential of land identified in PAGs

The primary objective is to address the urgent need to build more homes—efficiently and in suitable locations—by guiding development toward appropriate areas, balancing diverse stakeholder interests, and navigating market challenges. A key initiative involves unlocking the potential of land identified in PAGs, which could accommodate up to 160,000 housing units. However, activating these plots is a complex challenge that requires collective action. Collaboration with all stakeholders is critical to developing practical and effective solutions.

Prioritizing locations with existing infrastructure and public services

As President of Agora, I recognize the high potential of projects like Belval and Metzeschmelz. These initiatives are designed to deliver affordable housing while fostering sustainable urban development.

Prioritizing locations with existing infrastructure and public services is essential to preventing rushed and unsustainable growth. This approach ensures that communities are well-supported, resilient, and prepared to thrive in the future.

Enhancing collaboration for long-term success

The real estate sector faces three key challenges: delivering affordable housing, achieving a balance between density and sustainability, and addressing climate change. Tackling these issues requires open communication, mutual understanding, and collaborative problem-solving to foster innovation and ensure long-term success. To support this, it is crucial to establish clear and consistent frameworks and provide targeted support to developers, social organizations, and citizens alike.

Overcoming these challenges is a shared responsibility—it demands teamwork, adaptability, and a strong collective commitment. By working together, we can build a resilient, inclusive Luxembourg where everyone has a place to call home.