Jean-Paul Scheuren serves as president of the Chambre Immobilière. His interest in real estate is also entrepreneurial as the founder of Blochome.lu, which strives for new ownership models through blockchain and tokenisation. Photo: Romain Gamba

Jean-Paul Scheuren serves as president of the Chambre Immobilière. His interest in real estate is also entrepreneurial as the founder of Blochome.lu, which strives for new ownership models through blockchain and tokenisation. Photo: Romain Gamba

The housing market is perpetually in crisis, but for those with cash to spare, it’s a rare opportunity to find a buyer’s market, says Jean-Paul Scheuren, president of the Chambre Immobilière, Luxembourg’s chamber of estate agents.

Cordula Schnuer: The housing market is an evergreen problem in Luxembourg. How did we get here?

Jean-Paul Scheuren: The major problem is that the offer of housing is not high enough for the demand. We have had this since decades. The problem is ­getting more and more complicated. Before, it was a question of ‘I’m not able to buy a house’. Today, it’s ‘I’m not able to pay rent anymore’.

Instead of prices going down, we have an offer that is going down. Everybody needs to live somewhere, to have a roof over their head. And if you have to pay more than 30% of your funds on housing, it’s challenging. We need 30,000 dwellings under the market price when you look at mean revenues.

What is keeping housing in such short supply?

Having land is one thing. Being able to develop it is another issue. When you’re facing 10 to 15 years to develop a project of more than one hectare--so 30 to 50 dwellings--that’s much too long.

We also have to explain to the population that housing is a real problem. We should find solutions to motivate people not to leave housing empty. I don’t think taxation is the best way. You have to get it into their heads that it’s important for the country, that it’s an obligation, a responsibility if you’re an owner to occupy the dwellings.

Is there a housing market bubble?

You know there was a bubble when it explodes... A lot of issues are coming together. Interest rates are high, so a lot of people can’t access credit for the prices we have. The people who still have the ability to buy wait. You have a lot of insecurity. But there are good opportunities now. This is the first time in a long period that we have a buyer’s market.

There are several draft laws pending, from property tax reform to lease laws. What legislation do you think is necessary?

Putting a cap on prices won’t work. What would be necessary is investing huge amounts and finding partners for affordable housing. We need to find a way to make this accessible to private investors. The government should play the role of mediator in this process.

When looking for housing, real estate agencies don’t always enjoy the best reputation. How do you separate the wheat from the chaff?

Look for the logo of the Chamber Immobilière. It may be possible that you will encounter a problem, but at least you have the possibility to complain, to come see us and we help you find a solution.

If you want to buy and you see that problems aren’t recognised or downplayed, that person isn’t doing their job properly. We are there for both clients, the seller and the buyer. If people talk about special contracts and arrangements, don’t go for it. Don’t let yourself be put under pressure to sign immediately.

Where can prospective tenants and buyers learn about their rights and responsibilities?

There is a nice blog on vivi.lu where we address all these issues. And if you have questions, you can send them by email, and someone from the federation is going to give you an answer.

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