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There really is a stock of real estate properties in Luxembourg
There are many unique local characteristics to the market for new build homes in Luxembourg, with a variety of trends and challenges, as well as a fair amount of widely circulated, often erroneous pieces of received wisdom. It is clear that demand is shaped by the limited supply. As Luxembourg's population continues to grow rapidly, there is an ever more pressing need for new housing development projects. Fortunately, there are developers continuing to work hard to build new homes throughout the country. Here we talk to François-Xavier Gilen of the real estate firm Thomas & Piron.
It's clear that the current tight property market continues to put upward pressure on prices. For example, a square metre in a new home in the centre of Luxembourg currently often exceeds €10,000, reaching as much as €15,000 for top-of-the-range homes. At least properties in this country tend to be built to high standards of quality and durability.
The result is a market that remains attractive to investors.
What types of new property are currently available for immediate delivery?
We have a range of new homes across Luxembourg that are available now! These are recently completed apartments and houses, and most are being purchased quickly, with buyers encouraged by the security offered by investing in these types of property.
What specific tax breaks and incentives are available for buying new properties in the Grand Duchy, particularly those for immediate delivery?
These properties are eligible for all of the new housing tax-incentives that are in place until the end of 2024. For example, when private individuals buy for their own use, they receive a tax credit of twice €40,000 for a couple, a reduced VAT rate of 3%, and registration fees cut to 3.5%.
For investors, terms are also extremely advantageous, with a tax credit of €20,000 per person, accelerated depreciation rules, and reduced capital gains tax rates.
Where is there the greatest availability of new property developments ready for delivery?
Luxembourg City is undoubtedly the place where you can find the greatest number of recently-finished new properties on the market. We also have many new homes for sale in Dippach, Kopstal, Ell, Ermsdorf, Reisdorf and Rambrouch, places that have particularly attractive prices.
What are the main criteria that potential buyers need to consider when looking at a new available property? Is it price, finish, location, amenities…?
As always, it's important to understand if there are any hidden costs excluded from the headline sale price, as this will enable you to compare the different properties available on the market. We offer completed homes with finished exteriors, painted interiors, and often a fitted kitchen. Buyers can move in quickly and easily, while maintaining control of their overall budget.
Do you have any final pieces of advice for potential buyers?
Unlike properties sold off-plan, with finished developments home-hunters can visit to get a true feel for the quality, features and finish included in the price.
Affordable new housing
To help buyers, the Luxembourg government is working to encourage a supply of affordable new housing, with both purely state-funded projects and public-private partnerships. There is also a range of financial assistance to help home buyers, as well as energy-efficiency subsidies.
