Minister Meisch, Rental Housing Sector Stakeholders Discuss Residential Leases

On Wednesday 16 July 2025, Luxembourg's Minister of Housing and Spatial Planning, Claude Meisch, invited key stakeholders from Luxembourg's rental housing market to a discussion on issues related to residential leases.

According to Luxembourg's Ministry of Housing and Spatial Planning, the session marked a significant step in the government's ongoing dialogue with the sector. It brought together representatives of tenants and landlords, real estate stakeholders, professional chambers and members of rent commissions to discuss the challenges of regulating the rental market.

In his opening remarks, Minister Meisch stressed the central importance of residential lease legislation, stating: "It is essential to listen to both tenants and landlords in order to develop balanced, realistic and sustainable solutions. Together, we can and must address the current challenges of the rental market by reconciling the interests of the various stakeholders as best possible."

The discussion began with an interactive survey, gathering participants' opinions on the decline in the homeownership rate and the impact of innovation on the rental housing market.

Experts from the Luxembourg Institute of Socio-Economic Research (LISER) then delivered several presentations. These included a quantitative and statistical overview of the rental market, analysing landlord yields and discussions regarding a rental register. There was also presentations on the growing problem of the affordability ratio of tenant households in Luxembourg, as well as on new forms of rental accommodation and the current typology of market players.

The meeting concluded with an open discussion, which the ministry said confirmed the unanimous commitment of all participants to continue this "essential" and "useful" dialogue.

Minister Meisch expressed appreciation for the discussions, noting three key takeaways: "All participants agree on the need to review the rent calculation formula, the precarious situation must find a collective solution, and the dialogue among sector experts must continue in order to quickly prepare political decisions."

In parallel with the dialogue with rental housing sector representatives, the Ministry of Housing and Spatial Planning has commissioned LISER, its partner in the Housing Observatory, to carry out a study on "Rent Caps in Luxembourg" (Plafonnement des loyers au Luxembourg). The study is being conducted through an expert consultation process using the Delphi method. LISER has invited organisations representing the real estate sector, civil society and the research community - both nationally and internationally - to participate.

Through these initiatives, the ministry reaffirmed its commitment to continuing work on rental leases in close cooperation with all stakeholders to develop concrete solutions to the structural challenges of the Luxembourg rental market.