Living in Luxembourg part 4: Housing
Because of a robust labor sector, Luxembourg is a land of immigration par excellence. Ever since the 1980s, the resident population has grown by approximately 160,000.
With 602.000 inhabitants, the Grand Duchy of Luxembourg has exceeded, for the very first time in history, the threshold of half a million inhabitants. Through the years, this outstanding public growth has left traces of it in Luxembourg’s real estate market, which is under continuous strain. Similar to other high profile locations around the world.
Additionally, you will find different socio-demographic trends to think about. Consequently, a growing number of residents in this tiny nation live alone. Thus, the demand in the real estate market is increasing, and so are the prices. Buying property in Luxembourg has never been so attractive as an investment strategy.
Nevertheless, while the hunt for a house in Luxembourg could be a challenge. In this article, we will cover where to look for your new home in the Grand Duchy. Additionally, real estate market data, tips, and support methods make house-hunting in Luxembourg easier for those concerned.
Main figures
Over 67 % of the individuals who are now living in the Grand Duchy own their own homes. These figures were gathered in a study published by the Banque Centrale de Luxembourg (BCL) in cooperation with the LISER (Luxembourg Institute of Socio-Economic Research).
An additional peculiarity of the home market in the Grand Duchy is that single-family homes accounted for about 83.5 % of property ownership.
Property Rental
In Luxembourg, as in most places, looking for a place to rent requires looking at listings on specialized sites, accessible via www.editus.lu, or in the local press. Interested parties may also apply directly to the many estate agencies in the country.
In the Grand Duchy, and especially in the capital, few owners manage property rentals themselves. Most of them entrust this task to an estate agency, which earns a commission for each transaction. Thus, in the case of rental housing, the agency fee is usually one month’s rent plus VAT at 17%.
Furthermore, there’s usually a tenant’s deposit valued at the maximum to 3 months’ rent that must be paid before moving in. In some instances, this particular deposit is paid straight to the owner or perhaps transferred right into a blocked account in the kind of bank assurance.
Relocation Agencies
Hiring a relocation agency is the most convenient way to find a home to rent or buy, especially if you are looking for a home in Luxembourg remotely. A relocation agency provides personalized service to help you settle in smoothly. They will assist you in finding the ideal property for your family, settle management formalities, finding the most appropriate school for your children, amongst many other services. You can find a summary of relocation agencies in the online directory at www.editus.lu.
Purchasing a property
Precisely the same methods for finding a rental property is utilized when purchasing. Listings are accessible via www.editus.lu, or in the local media, and estate organizations.
If you plan to buy a property, note that the site www.notariat.lu allows you to find a notary. Which is a competent person to draw up a deed of sale following the procedures in force, and the signing of the ‘preliminary sales agreement’ (compromis de vente). Also, notaries regularly conduct public auctions of real estate, which can prove to be very competitive and exciting.
All residents in Luxembourg have the right to request financial assistance from the government to cover unexpected costs related to property purchasing for private accommodation. The allowance is known as the tax credit (Bëllegen Akt). For more information, please refer to ‘Apply for a tax credit for deeds’ on Luxembourg’s Citizens’ Portal.
Advertised houses for sale prices
The value of houses per m² and location is the main price variant, therefore, very subjective. Nevertheless, the price of the property depends above all on the surface area of the land and its characteristics. Below, are some averages in different locations in Luxembourg.
In Luxembourg City, the price is an average of €1,610,113, or €7,914/m², compared with an average of €1,198,000, or €6,467/m² over the 2016–2017 period. According to the available statistics, it takes on average €2,798,488 to buy a house (9,754 €/m²) in Belair.
In the municipality of Niederanven, an average of €1,772,462 will be spent on a house, €1,387,752 in the municipality of Walferdange, €1,184,254 in Sandweiler, €1,281,590 in the municipality of Hespérange, € 1,397,212 in Bereldange and €1,431,485 in Strassen.
Luxembourg House Prices Growth
Luxembourg’s House Prices grew 11.4 % in Jun 2019. Luxembourg House Prices Growth data is updated quarterly, available from Mar 2008 to Jun 2019, with an average growth rate of 5.0 %. The data reached an all-time high of 11.4 % in Jun 2019 and a record low of -2.5 % in Sep 2009.
Look closely at prices, procedures, and your rights
Before you embark on your search, take a look at the website of the Housing Observatory (Observatoire de l’habitat). This body, which was established by the Ministry of Housing in 2003, collects data on the housing market and, throughout the year, analyses the supply and prices of housing and building plots.
Visit the Citizens’ portal at guichet.lu to learn more about steps to be taken regarding the purchase of housing.
For a better understanding of your rights and duties as a future property owner, consult the brochure ‘Devenir propriétaire’ (‘Becoming a property owner’) published by the Consumers’ Union (Union des consommateurs).
State aid is provided in some instances (funding for construction, social assistance, ecological aid, etc.) The aid is intended for people who wish to build or renovate a home. Nevertheless, given the number of existing grants, it’s a good idea to take expert advice about the criteria as well as conditions in force.
The Housing Assistance Department (Service des aides au logement) of the Ministry of Housing provides guidance of this particular type. From its 2 workplaces (in Esch-Sur-Alzette and Luxembourg-Hollerich), this specific department brings together all of the pertinent information regarding state aid for real estate. Their staff will willingly answer all questions from interested parties: private people, associations, architects, and designers.
They can also provide information regarding special state financial aid, such as for individuals with decreased mobility, or to improve your future home’s level of energy efficiency.
Major housing events
The housing market is an intricate area concerning all residents in the Grand Duchy. This is why several housing events are organized throughout the year in Luxembourg.
These events provide an excellent opportunity to address concerns regarding any housing or relocation project. Whether you’re attempting to locate an apartment to lease or maybe to get a mortgage to buy a property or perhaps are intending to perform renovations or energy efficiency upgrades.
Experts await you in the following events:
The Housing Week
Organized by the Ministry of Housing in collaboration with Luxexpo, the National Housing Week (Semaine nationale du logement) gathers in one place all the players involved in housing. Such as estate agents, architects, developers, builders, brokers, banks, insurance companies, public administrations. It takes place every year in late September.
The Spring Fair
Held annually in May, the Spring Fair brings together, for a week, exhibitors from a variety of fields, such as food and fashion, and also housing, in the broad sense of the term.
Two specific areas of the Fair should be of interest to those who are about to move into a new home. Namely, Mobigast, an area devoted to household arts and home management and Floriva, focusing on gardens, verandas, and swimming pools.
La Home and Living Expo
The Home and Living Expo (formerly the Autumn Fair), which takes place in October, is a large public exhibition devoted to property investment. It is especially interesting for those who are planning to carry out building or renovation works, or for individuals who are looking for inspiration. Typically, more than 350 exhibitors, experts in the fields of crafts, furnishings and decoration, construction and renovation, high-tech and services, rub shoulders with each other in an area of 34,000 square meters.
Finding a home is exciting yet daunting anywhere in the world. Regardless if rental, purchasing, or building a new home. Several elements must be taken into consideration. Especially when immigrating to a new country.
Luckily, Luxembourg has an excellent network of relocation agencies. They are used to working with immigrants in every step of the way. Even before setting foot in the country. It’s highly advisable to consult with one of them as soon as you decide to immigrate. They will make your relocations to this fairy tale country as smooth as possible. They address all areas of concern so you can start living Luxembourg’s royal lifestyle from day one.
Thank you for reading my article, it was originally published on my personal website https://renatozamagna.com/. If you would like to reach out to me, or if there is a topic you would like me to cover please email me at thesparkblog@renatozamagna.com.
