According to the agreement signed on 3 December between the liberal, socialist and Green parties, "free public transport will be introduced in the territory of the Grand Duchy during the first quarter of 2020". This measure will make Luxembourg the first country in the world to make all its public transport free of charge, including trains, the new tramway and the entire bus network. Free admission will no longer apply only to under 20s and students but to all users, including non-residents of the country.
This measure is primarily a social measure. Indeed, for the lowest wages, transport expenditure is particularly important and represents a significant share of household expenditure. Limiting them will contribute to increasing the purchasing power of these economic actors.
In addition, this agreement aims to have a positive effect on the environment and reduce road congestion.
The impact of this measure on the real estate market
Free public transport and the development of the public transport network throughout the country will help to increase the attractiveness of properties located near the public transport network. The experts of the Engel & Völkers Luxembourg real estate group therefore forecast a significant increase in the prices of the properties concerned.
In short, this measure further strengthens the determinants in favour of real estate investment in the Grand Duchy of Luxembourg, a pioneering country that has already demonstrated its progress in many areas.