According to a Luxembourgish businessman, the reason for the rising cost of housing is the long administrative process.
Flavio Becca, a businessman and developer, proposed the introduction of an administrative tax in Ban de Gasperich. Becca said that he’s not against the government raising the property tax or introducing a tax on speculation. The reason is that Becca wants to build. Becca, a Luxembourgish businessman, believes that the government should institute an additional tax to be placed on administrations when they take too long to resolve the case.
He attributes the rise in the cost of housing to long administrative procedures, however, Becca also stated that he’s not looking to make quick money. Becca says, exactly like Marc Giorgetti, the developer who was our source of information on RTL Radio, that someone with a 20 percent margin will need to split the money in 20 years. Becca claimed that he owned parcels of land for more than 30 years before any construction work was completed.
He also stated that he might consider incorporating affordable housing into his developments if authorities permit him to build higher. Becca claimed that the reverse is often the situation. Becca cited as an example an instance where Luxembourg City refused to allow the construction of higher levels since it could have negatively impacted the city’s skyline. Becca said that he didn’t alter his costs to reflect inflation in the same way as other developers. Becca asserts that inflation is usually manufactured artificially. He said that steel producers intentionally cut production following the price of steel falling in order to push up costs.
The developer is most well-known for his work in the Ban de Gasperich neighborhood. He has also reiterated his plans to create a tripartite group for construction, in which the municipal, government, and private developers can seek answers. Becca favors a quadripartite as “the banks must also be present.” Becca was furious with Henri Kox, Housing Minister, for “purposely excluding” the private sector.
Tram, Eric Lux, and other legal issues
Flavio Becca One of our colleagues at RTL.lu Also, Flavio Becca spoke to us regarding the fact that at present only one tram line can be constructed in Howald. The Olos Fund owns a part of the property. This is due to an unresolved disagreement between Eric Lux and Flavio Lux who were former business partners. Becca asserts that the interim administrator and the public works administration are on the right path to coming to an agreement. According to reports, the dispute resulted from technical problems.
Eric Lux’s disagreement with Becca was not addressed by Becca; she claimed that the court system was “mature enough to be able to know” how to proceed. They are battling over EUR100 million in the Olos Fund.
Becca’s legal dispute with the high-end watches remains in the process of being resolved. The Luxembourgish businessman has said he will take the issue to the Court of Cassation.
