Luxembourg

Luxembourg has experienced a strong demographic growth between 1991 and 2014 (from 384.000 to 550.000 citizens). More than half of the Grand Duchy’s population is concentrated in the urban and peri-urban areas in the centre (Luxembourg City) and in the south (Esch-sur-Alzette, Differdange and Dudelange). 45.3% of Luxembourg’s total population are foreigners (compared to 29.4% in 1991). In Luxembourg City, their share even amounts to more than 60% (Statec, 2014).

Housing constitutes one of the biggest challenges in Luxembourg today. The shortage of accommodation in combination with the growing demand for properties has forced up housing prices ever since the 90s. Due to increasing income gaps, the need for social housing is growing. Much of the new housing is developed in peri-urban and rural areas thus leading to urban sprawl, regional land use imbalances and a reduced attractiveness of cities. Moreover, as a result of the insufficient supply and the uneven distribution of affordable housing, Luxembourg is facing the risk for further social and spatial segregation of disadvantaged groups.

Despite recent attempts to improve and promote public transport and soft mobility, the continuous growth in the number of cross-border workers (more than 150.000 daily) and growing commuting distances continue to cause major traffic problems in Luxembourg.

In order to address these issues, the Ministry of Sustainable Development and Infrastructures has initiated several integrated urban planning processes (‘Conventions’ between the ministry, the cities and their adjacent municipalities).