Luxembourg Rental Prices to Surge in Coming Months

Luxembourg - April 10, 2024

While talk of potential improvement in the housing market persists, rental prices continue to surge across the nation, a problem that could worsen in the coming months.

In Luxembourg, new housing construction has become increasingly scarce, a trend that has been ongoing for some time. A significant decrease in construction activity has been observed since the beginning of 2022, attributed to rising bank interest rates.

This poses a significant challenge for a country like Luxembourg, which welcomes over 10,000 new residents each year. Even when construction was rapidly underway, the country struggled to produce over 4,000 new residential units annually. A situation that has deteriorated sharply in 2023.

It is no secret that Luxembourg is still grappling with the repercussions of this productivity decline. The rental market, which was already under pressure before the inflation crisis, is now "clogged."

Is the worst yet to come?

And whether we like it or not, the situation is unlikely to improve. It is predicted that the repercussions of the housing construction downturn will affect the rental market in 2024 and 2025.

The rental market, due to housing shortages and delayed demand in the purchase market, could experience unprecedented tension. Thus, the crux of the problem lies hidden within the construction sector for the rental market.

Another solution to offset the housing shortage is the taxation of vacant properties. Many owners in Luxembourg prefer to keep their vacant properties rather than renting them out due to the lack of taxation on vacant housing. This solution could potentially reintroduce between 10,000 to 20,000 homes overnight. However, a significant portion of vacant housing exists because they do not meet the necessary standards for market entry. Many apartments nationwide lack sufficient ceiling height for rental and occupancy or are withheld by owners fearing potential tenant damages.

Rental Prices Skyrocketing Rapidly

Luxembourg, faced with an emergency situation, can no longer afford to be indecisive. There seems to be no solution, and rental prices are rapidly increasing. In the coming months, we should brace ourselves for an explosion in housing rental prices in Luxembourg.

The country's allure is now being questioned. Hence, the new government has initiated a series of measures at the beginning of the year to restart construction. However, their implementation remains largely on paper.

Consumer Union Calls for "Less Greed" and "More Humanity" from Luxembourg Banks

Luxembourg - April 10, 2024

The Consumer Union of Luxembourg (ULC) is urging the Luxembourg financial center to share more profits with its customers.

"While champagne corks are currently popping at Luxembourg banks, customers are still left behind," stated the ULC in a press release.

The Consumer Union of Luxembourg condemned the fact that "many customers receive relatively little profit" from the "historic profits of €6.6 billion" held by Luxembourg banks. They suffer from both high interest rates and exaggerated pricing policies by the banks.

The Consumer Union decries the "outrageous" banking fees and calls on financial institutions to "take action to meet the needs of their customers." Specifically, it demands "at least a limited number" of "transparent fees" and some basic free services such as withdrawals and transfers at ATMs. Some banks in Luxembourg can charge up to €7 for cash withdrawals.

The Consumer Union also wants "fair and affordable credit terms, such as lower interest rates." Additionally, "the time has come for banks to return to their core values" and cease branch closures and ATM shutdowns.

The Consumer Union calls on policymakers and regulators to provide new regulations to "ensure that banks act in the interest of the community" to put "maximum pressure on banks."

"Banks and the financial center would certainly not suffer from a little less greed and a little more humanity," stated the Consumer Union, urging Banque Spuerkeess, which is 100% government-owned, to take the lead and "set an example for other banks."

FBI Seeks Owners of Stolen Painting in Luxembourg

Luxembourg - April 10, 2024

In a recent statement, the FBI expressed hope to locate the rightful owners of a stolen painting in Luxembourg, believed to have been taken during World War II.

Who are the owners or legal heirs of this painting by the Belgian artist Jacobus Albertus Michael Jacobs, better known as Jacob Jacobs? That's what the FBI's Chicago office is striving to uncover. This announcement was sent by the United States Embassy in Luxembourg to the SIMOURQ News based in Echternach. According to the Federal Bureau of Investigation (FBI), this artwork, titled "Seascape," was stolen from Echternach, Luxembourg, during the Battle of the Bulge in World War II.

The FBI's Art Crime Team was established in 2004, one year after the looting of the National Museum of Iraq. It has since facilitated the return of over 20,000 stolen artworks worth hundreds of millions of dollars to their rightful owners.

Individuals with information regarding the legal owners of this artwork are urged to contact the FBI via email at SeascapeTips@fbi.gov .

Debating the Controversial Plan for Returning Asylum Seekers to Third Countries in the European Union

Luxembourg - April 10, 2024

According to the London-Kigali Partnership Agreement, under which Rwanda commits to accepting asylum seekers who have "irregularly" arrived in Britain, even if they have never set foot in the African country, this plan has gained support in the European Union from countries like Austria and Denmark.

Reforms in the original "Migration and Asylum Pact," changes that Members of the European Parliament will vote on, have alarmed some parliamentarians and non-governmental organizations, fearing a new step towards "externalization" of EU migration policy, at a time when asylum applications (over one million refugees in 2023) in Europe have surged.

Italy-Albania Agreement

This law allows a European Union member state to return an asylum seeker to a third country deemed "safe," provided there is a "link" between the expulsion and the third country. Italy has opted for a different form of outsourcing and signed an agreement with Albania in November, intending to transfer rescued migrants in the sea to closed centers in Albania, away from the European Union, managed by Italian authorities who process asylum requests there. If positive, unlike the British bill where migrants sent to Rwanda would be returned to Britain, asylum seekers are relocated to Italy. The agreement between Rome and Tirana on the "borderline" asylum formula was welcomed by the head of the European Commission as a model beyond the beaten path.

According to the program manager for European Affairs at the Egmont Institute, "The Italian-Albanian system can create small systems." For this former head of migration and asylum at the European Commission, such bilateral agreements can be found with other Balkan countries, "for example, between North Macedonia and Germany." He believes, "It demonstrates a particular political logic, so candidate countries clearly present a very clear sign that they are ready to participate in some form of European solidarity in asylum treatment and international support."