Minister: Apartments used for business push rent prices up in Luxembourg

(ADW) In a recent statement Luxembourg's Housing Minister, Marco Schank explained that the shortage of apartments in the country has deteriorated in part due to many companies using apartments designated for housing for business purposes. This phenomenon is occurring due to the lack of office space and rental costs.

The recent failure of an alarming 17 stores in the centre of Luxembourg City meant that last week discussions took place relating to the main reason for difficulties faced by many businesses establishing themselves permanently in the country: rents are too high.

In the Grand Duchy, high rents are due to the fact that there is not enough housing, but rent is also very high for businesses including supermarkets, offices and restaurants for example.

On Friday Marco Schank, underlined the cases of 17 store failures in the capital and warned that the situation is equally dramatic in the housing market as rent does not only "eat" most of a family's income, but the problem is increasing as apartments for housing are being used more and more without permission for business purposes.

This problem is occurring especially in the capital and in Esch-sur-Alzette, which further aggravates the shortage of accommodation, Schank stated.

The minister now wishes to resolve the situation by giving local mayors the authority to authorise or not on a case by case basis, the use of an apartment for commercial activities.