July 27, 2026

Mixed Use

How well can residential and business life coexist? In recent months and years, several disputes between residents and businesses have made headlines across Luxembourg. These cases not only involve the individuals and local councils concerned, but also increasingly require the involvement of the Ministry of Home Affairs. According to the Ministry, the issue is becoming more prevalent as the relationship between living and working spaces continues to evolve.[1]

One key reason for this growing tension is that people today are more willing to voice concerns when they feel they are being treated unfairly, says Frank Goeders, First Government Counsellor at the Ministry of Home Affairs. He adds that it is also, to some extent, a consequence of government policy, which is placing a greater emphasis on mixed-use urban development. This policy entails moving away from purely residential districts to create more dynamic neighbourhoods and villages, where there is activity throughout the day.[1]

This is, in a sense, a return to how things worked decades ago, before the dream of the detached house in the countryside took hold. The aim is to avoid unnecessary commuting and to foster vibrant communities by bringing residential and commercial life closer together. However, new commercial activity must enhance, rather than diminish, quality of life for residents. Goeders notes that a key distinction needs to be made between commercial and industrial activities. If a local council is unsure whether a proposed use is legal, it can seek clarification from the Ministry of Home Affairs, which frequently assists with interpreting the relevant legal texts.[1]

The debate does not stop at commercial operations in residential areas. The government has also revised regulations to allow the creation of accommodation for employees in national and regional industrial zones, a move intended to help people who would otherwise face long commutes or be unable to afford local housing. Goeders explains that the idea is to give employees the option to live close to their workplace, thereby improving their quality of life. However, he emphasises that it remains important to carefully consider where and how such housing is established within industrial zones, as not all locations are suitable due to potential nuisances from ongoing activities. This regulatory change only came into effect this year, so no housing has yet been built in industrial zones. The Ministry of Home Affairs and the Ministry of the Economy are currently assessing which national industrial zones might be suitable.[1]

When it comes to granting building permits, mayors have three tools at their disposal: the General Development Plan (PAG), the Special Development Plan (PAP), and the building regulations. If a project complies with all three, the permit must be granted, regardless of the mayor's personal opinion. Conversely, if even one requirement is not met, the permit cannot be issued.[1]

The detached house in the countryside was the dream. The dream caused commuting. The commuting caused friction. The friction caused policy. The policy causes mixed use. Mixed use causes disputes. The disputes reach the Ministry of Home Affairs. Frank Goeders is the First Government Counsellor. He says people are more willing to voice concerns. He says the policy is a return to decades ago. Decades ago, people lived above the shop. The shop was on the ground floor. The people were on the first floor. The commute was the stairs. The stairs were short. The dream was the detached house. The detached house was in the countryside. The countryside was far from the shop. The shop was far from the house. The car was between them. The car caused commuting. The commuting caused emissions. The emissions caused policy. The policy is mixed use. Mixed use is the return. The return is the shop and the house. The house and the shop. The residents and the businesses. The residents complain. The businesses complain. The Ministry interprets. The mayors have three tools: the PAG, the PAP, the building regulations. If all three are met, the permit is granted. The mayor's opinion does not matter. The three tools matter. The housing in industrial zones is new. The regulation came into effect this year. No housing is built yet. The Ministry is assessing. The industrial zones may have nuisances. The nuisances may not be suitable. The housing is for employees. The employees cannot afford local housing. The employees commute. The commuting is the problem the housing is solving. The housing is in the industrial zone. The industrial zone is where the work is. The work is where the housing is. The stairs are short again.[1]

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