5,348 Units Registered in Luxembourg's Special Fund for Affordable Housing in 2025

On Thursday 2 July 2026, Luxembourg's Ministry of Housing and Spatial Planning presented the 2025 Annual Report of the Special Fund for Affordable Housing.

According to the ministry, the report highlights unprecedented growth in investment and progress in the development of affordable housing across Luxembourg.

As of 31 December 2025, the Special Fund comprised 5,348 subsidised housing units across 351 projects, representing 1,293 additional subsidised homes approved during the year. State investment in affordable housing reached a record €474 million in 2025, compared with €224 million in 2024.

"The figures for 2025 reflect not only an exceptional year, but a lasting trend. Thanks to the commitment of the State, municipalities and all our partners, we are gradually building a larger, more diverse and better-distributed stock of affordable housing throughout the country," said Claude Meisch, Minister of Housing and Spatial Planning.

The ministry noted that the acquisition of off-plan housing (VEFA) has become a key instrument of the national housing policy. By the end of 2025, the State had acquired 460 homes through this mechanism. During the first half of 2026, the number of homes acquired or reserved increased to 830, reflecting the government's intention to accelerate the expansion of the public affordable housing stock.

The report also highlighted the strengthening of the State's land reserves. As of 31 December 2025, the State owned 1,656 ares of land, representing the potential for approximately 922 additional homes.

The ministry added that Housing Pact 2.0 continues to play a central role in the national housing policy. With 98 partner municipalities, the initiative now covers the vast majority of communes in Luxembourg and supports local authorities in spatial planning, neighbourhood development and the delivery of affordable housing projects.

Among the subsidised housing units, 64% are intended for affordable rental, while 36% are offered for affordable or moderate-cost home ownership, including through emphyteusis arrangements.

"Every new home represents progress, but we must maintain this pace. The historic investments made by the State, together with the commitment of municipalities, public developers and all our partners, are now producing tangible results. We must continue these efforts in order to sustainably increase the supply of affordable housing throughout the country," added Minister Meisch.

According to the ministry, the 2025 Annual Report of the Special Fund for Affordable Housing "demonstrates that cooperation between the State, municipalities, social housing developers and private-sector partners is delivering tangible results". The government intends to continue accelerating the development of affordable housing for young people, families and lower-income households.