Property prices in Luxembourg

As accommodation costs rise faster than salaries, affordability isn't just an issue for newcomers. According to a presentation I listened to last week, an estimated 10,000 Luxembourgers are now living over the border - that's 3% of the Luxembourgish population, and rising.

The government is aware - and has committed to building more affordable (?) accommodation. SNHBM speak about offering property at less than Euro 3,000/m2. But this offers a glimpse into part of the issue. We still judge accommodation in terms of available space. Compounding the issue, we also judge rooms in terms of function. With more companies offering smart furniture that can allow space to perform multiple functions - are we looking at, and building accommodation in the right way?

While the population density is rising fast, it is still below that of neighbouring countries. But here lies another issue. Today's young single metropolitans don't want to get stuck in the middle of no where after 11pm. CFL are piloting a limited 'Night Owl' service over the holidays. Making this a permanent feature would offer a whole host of benefits - including increasing the appeal of living outside the city (and hopefully reduce the levels of drink driving).

Mortgages are becoming increasingly difficult to secure. My Bank Manager recently confirmed that today it's not just about what you earn - but how you live. If you are lucky enough to be on the housing ladder, things do look better though. Tax deductions on mortgage interest (recently increased) and house insurance, combined with low property taxes take some of the sting out of tail.

In my view, the accommodation crisis is having a profound impact on many levels. The goods news is that action is being taken - but there is more to be done.