Real estate industry wants legal certainty (Wort.lu)

The government had envisioned a step-by-step implementation of their strategic master plans in dialogue and cooperation with all citizens and all civil society instances. Minister François Bausch had spoken of a “participatory procedure” which would take about two years to unfold. Barely four months after he presented the four plans in parliament, is that same project being picked to pieces from all sides.

A court ruling that rejected a building permit on the basis of the master plans can have dramatic consequences for the entire real estate sector. Of course the government had not expected to be confronted with that kind of scenario. As such, the procedure for the application of the master plans is not yet complete. Now the texts could, as the court verdict has shown, however, be interpreted so that various measures enter into force immediately. Many people fear therefore that such legal loopholes will freeze the real estate sector and put on hold all construction projects in the country.  

“The concept that the government has come up with just does not work”, complains the president of the Chambre Immobilière, Jean-Paul Scheuren. Construction projects already approved now risk to be challenged on the basis of the master plans. Without clarifying the legal framework a real mess may be the next to follow.

 
Impeccable laws

The government had provided transitional provisions in order to gradually align the former State Planning Act with their master plans. The recent judgment revealed now some inconsistencies. “We do not want to play the role of the alarmists. But we need proper and clear laws, so that we can work,” warns Jean-Paul Scheuren.

The legal uncertainty is currently paralysing the entire real estate industry. Minister François Bausch has promised to RTL Radio that remedies will be found. A circular letter was sent out to all municipalities to calm things down and clarify the procedures to be followed. The government wants to touch up the state planning law accordingly in order to eliminate any ambiguity.

“With their apologies and a circular letter, we cannot do anything. We want that the current legal situation is rectified, and as quickly as possible,” Scheuren said questioned on that topic by daily newspaper d’Wort. The unrest in the sector is not least due to bad experiences dating back to ten years ago. At that time the municipal land use law was revised. Significant implementation problems had put many construction projects on hold.