Signature of contracts for the acquisition of off-plan housing

25 apartments and 92 rooms for rent in Dommeldange

At the same press conference, the City and the companies Immobel Real Estate Fund and Nennig Developpement S.à.r.l. signed a reservation agreement on the full-ownership acquisition of two lots of an off-plan real estate project. The land earmarked for the "River Place" project is part of the "Rue Nennig" new development PAP (projet d'aménagement particulier "nouveau quartier") in Dommeldange, and is located between Rue Nennig, Route d'Echtermach and the Alzette. The "reserved future constructions" comprise 25 apartments and 92 rooms in shared apartments distributed over the following lots:

• Lot 3: four-level residential building consisting of six 8- or 12-room apartments, all configured for apartment sharing, with ±1,682 m² of SUV (surface utile de vente – similar to usable floor area) earmarked for home acquisition accommodation units.
• Lot 4: mixed-use building with a ground floor and six levels comprising
  • a ground-floor/garden-level base covering ±1,400 m² of USV that can be used for the activities listed in the PAP, i.e. commercial premises, office space, premises for self-employed professionals, and a multipurpose rooms
  • set upon this base are a hanging garden and three residential blocks comprising 25 apartments covering ±2,224 m² of SUV (ten 1-bedroom, one 2-bedroom, and fourteen 3-bedroom apartments), including five affordable housing units and four 8- or 12-bedroom apartments, all configured for apartment sharing, covering ±1,065 m² of SUV
• The basement shared by Lots 3 and 4 houses the regulated number of parking spaces, 25 cellars and the equipment rooms

The estimated total sale price is €60,660,951.98 based on the project as it is established on the date the reservation agreement is signed. The final sale price will be determined based on the actual SUV as measured by the surveyor appointed by the City when the deed is signed. Construction will begin within six months of the signing of the notarised deed and at the earliest in September 2024. The construction work is expected to be completed within no more than 36 months.

The signing of the reservation agreement follows on from the call for projects published by the City in October 2023 with a view to expanding its portfolio of real-estate holdings and accelerating the construction and rental of new housing in the city, while at the same time supporting the construction sector amid the current strained economic situation.

Meanwhile, the City's departments are continuing negotiations with three other developers that responded successfully to the call for projects, having satisfied the minimum conditions set by the City.

Seven single-family rental homes in Hamm

The City of Luxembourg also announced the purchase of seven off-plan single-family homes in Rue de Hamm. A total of 17 leasehold homes were put up for sale as part of the Stugalux "Baulücken" project, to be purchased by candidates selected by the City. However, following the call for applications issued by the City of Luxembourg in January 2023, only 10 homes were purchased. The combined effect of higher interest rates and the income-based applicant selection criteria was a major limitation for applicants seeking to purchase a home. The homes will be built on a rolling basis and are expected to be completed between October 2024 and July 2025. The seven single-family homes will then be incorporated in the stock of rental housing units managed by the City's Service Logement (Housing Department).

With a view to honouring its commitments set out in the College of Aldermen's 2023–2029 mission statement, the City is continuing its efforts to accelerate the building and rental of new housing units – be they affordable housing, social housing or "standard" housing units – while at the same time seeking to preserve a suitable degree of social diversity across the city. This is in keeping with the City's desire to provide housing options for people who do not have the means to purchase a home on the free market.