Luxembourg State Acquires Caves du Sud Site for €8.5m, Intended for Affordable Housing

On Monday 27 October 2025, Luxembourg’s Ministry of Housing and Spatial Planning announced the State’s acquisition of the "Caves du Sud" site in Remerschen.

The Luxembourg State, represented by the Ministry of Housing and Spatial Planning, is continuing its “active commitment” to affordable housing, stated the ministry. As part of its land acquisition strategy, the State recently acquired the "Caves du Sud" site from the Domaines Vinsmoselle cooperative for a total amount of €8,500,000.

A Special Development Plan (PAP) is currently in effect for the site and foresees the construction of 45 housing units. The SNHBM (national low-cost housing administration), responsible for developing the project, is currently conducting an in-depth analysis to identify potential optimisations to the PAP, particularly regarding affordable housing, and to define concrete implementation modalities.

The winery buildings are listed as municipal historic monuments, and their protected status will be taken into account in the future development. The wine cellar will remain open and operated by the Domaines Vinsmoselle cooperative until a decision is made on the next steps.

Located in the municipality of Schengen in southeastern Luxembourg, the site is said to be fully aligned with the guidelines of the national Master Programme for Spatial Planning (PDAT). The ministry noted that the project adheres to the principles of coherent and sustainable land use planning, prioritising the creation of housing in the well-suited areas - close to infrastructure and essential services and benefiting from good public transportation accessibility.

This acquisition forms part of the government's overall land acquisition strategy, which aims to expand the publicly owned land base and thus make land available to public developers for the construction of affordable housing.

This measure complements the VEFA (off-plan purchase) programme, for which approximately €200 million of the dedicated budget of €480 million has already been committed for the acquisition of 328 units. Reservation contracts worth approximately €106 million have also been signed for the acquisition of 147 units.

The VEFA programme, which runs from 2024 to 2027, foresees the purchase of approximately 800 housing units for a total of €480 million. This initiative aims to quickly and efficiently increase the State's affordable housing stock while supporting the production of new housing on the Luxembourg market.