new_construction_luxembourg.png

## 1. 🤝 Negotiation opportunities in a crisis market

The current real estate crisis offers new negotiation possibilities with developers.

Take advantage of price reductions or obtain free benefits, such as:

A **fully equipped kitchen.**

**Parking spaces** or a **garage** included.

**Upgrades** in the finishes (paint, flooring).

With developers being more flexible, it is an excellent time to buy under favorable conditions.

## 2. 💰 Financial benefits and state aid

Reduced VAT to 3% for primary residences, allowing savings of up to €50,000 on the total price.

Additional state aid:

**Acquisition grants**: Financial aid for primary residences, granted subject to income conditions.

**Energy renovation grants**: If you opt for a new home, grants are available for highly energy-efficient equipment.

**Reduced-rate loan (PRIMe House)**: Available to finance installations such as solar panels, a heat pump, or mechanical ventilation.

**Subsidies for young households:** Additional support for young families or first-time buyers.

Staggered payments based on the progress of construction, limiting the need for initial capital.

A new property retains its value better, increasing its future resale potential.

## 3. 🎨 Customization of the property

Adapt your future property to your tastes:

Choose the materials (flooring, tiles, paint).

Modify the layout of the interior spaces according to your needs.

Opt for energy-efficient solutions like solar panels or heat pumps.

**Result**: a home that perfectly meets your expectations, with no additional work required after delivery.

## 4. 🌿 Compliance with modern standards

High energy performance (class AA), guaranteeing energy savings.

Construction using cutting-edge materials and technologies, ensuring comfort and durability.

Compliant with the latest regulations regarding ecology and insulation.

## 5. 🔒 Legal security and guarantees

Completion guarantee: your investment is protected, even in the event of a problem with the developer.

Post-delivery guarantees:

- 1 year for finishing defects.
- 2 years for detachable equipment.
- 10 years for structural defects.

These protections allow you to buy with complete peace of mind.

## 6. 📈 Value appreciation and practical benefits

A new property retains its value better on the market, ideal for a long-term investment.

Easier organization thanks to a clear schedule and a scheduled delivery date.

No costs for renovations or repairs, as everything is new and under warranty.

[Buying a VEFA property in Luxembourg](https://nextimmo.lu/buy?type=100) is the opportunity to become the owner of a modern, energy-efficient home perfectly adapted to your needs. 💡 Take advantage of the current crisis to negotiate favorable conditions and benefit from the many financial advantages—including state aid—and legal benefits that this type of purchase offers.

🏡 Why Is Buying an Off-Plan Property Advantageous in Luxembourg in 2025?

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_The storm that hit the real estate market in Luxembourg seems to be coming to an end. Existing real estate is regaining momentum, and the interest of potential buyers is reviving. The rebalancing phase has allowed the existing property market to stabilize, leading to a recovery in transactions. In contrast, the new-build market is showing modest signs after a pause of more than two years._

📉 Between 2022 and 2024, prices followed a downward trend, recording an average decrease of around 1% per month. This adjustment has offered new opportunities to buyers who had put their projects on hold. The new-build market, for its part, will also have to adjust its prices to the current reality, especially since interest rates are not expected to drop below 2.5% this year.

In this changing context, assessing the price of a property has become a major challenge. In the past, an experienced real estate agent could estimate the value of a property in their neighborhood almost instinctively. Today, the exercise requires in-depth expertise and the use of appropriate methods.

📊**The importance of advanced expertise for a reliable valuation**

Estimating the value of a real estate property now requires a combination of skills and precise data. Whether in the choice of methods or the application of specific coefficients, the exercise must be based on rigorous analysis. By combining different approaches, it is possible to obtain a comprehensive and realistic view of a property's value, close to its fair market value.

In Luxembourg, relevant data is often lacking, particularly in municipalities where few sales have been completed recently. To bridge this gap, Nextimmo has developed a moderation method to supplement the essential data and ensure reliable valuations, even in areas where transactions are rare.

💡 With 20 years of experience in real estate, technology, and marketing, we are able to provide accurate valuations, even in a constantly evolving market.

✅ **Why choose a professional valuation with Nextimmo?**

Entrusting Nextimmo with the valuation of your real estate property guarantees a reliable assessment in line with current market realities. 

**Our valuations are:**

📍 Accurate: Based on in-depth analysis and reliable data.

📝 No obligation: You receive a clear valuation without any commitment.


👉 Request a professional valuation now by clicking on [this link](https://nextimmo.lu/contact).

👉 Pre-evaluate your property online using our tool [accessible here](https://nextimmo.lu/estimation).

🏡 Conducting a Property Valuation During a Real Estate Market Rebalancing

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When considering taking a real estate training course in Luxembourg, it is crucial to ensure that it will offer you not only the necessary knowledge but also a competitive advantage in the job market. Here is a detailed guide to evaluating the quality of a real estate training program.

## **1. Accreditation and recognition**

Accreditation is the first indicator of a training program's quality. In Luxembourg, real estate training programs must be accredited by recognized bodies such as the ministère de l’Éducation nationale or the Chambre de Commerce du Luxembourg. This accreditation guarantees that the program meets rigorous standards in terms of content, teaching methods, and evaluation. It also ensures that the diploma or certification obtained will be recognized by employers and institutions in the real estate sector.

Furthermore, accredited training programs are often aligned with the professional and legal requirements of the Luxembourgish real estate sector, which is essential for practicing certain professions, such as a real estate agent or property manager. It is therefore important to verify that the training you plan to take is properly accredited.

## **2. Program content**

The program content is another essential criterion. A quality training program must cover the various aspects of the real estate sector, including:

- **Real estate law**: Understanding the laws and regulations in force in Luxembourg, including those relating to property, leasing, co-ownership, and urban planning.
- **Real estate taxation**: Mastering the taxation principles that apply to real estate transactions, property management, and investments.
- **Property management**: Knowing how to manage a real estate portfolio, including maintenance, tenant relations, and investment profitability.
- **Sales and negotiation techniques**: Learning to close real estate transactions, negotiate contracts, and advise clients professionally.
- **Real estate valuation**: Being able to determine the value of a property based on objective criteria and market trends.
- **New technologies**: Understanding the impact of new technologies on the real estate sector, such as online management platforms, virtual reality for property viewings, and market analysis tools.

A good program should not only cover these aspects but also integrate case studies, practical exercises, and simulations to allow students to put their acquired knowledge into practice.

## **3. Competence of the trainers**

The quality of the trainers is a determining factor in the effectiveness of a training program. Trainers must be experts in their field, with significant practical experience in the real estate sector. Ideally, they should have held positions of responsibility in real estate agencies, property management companies, or financial institutions involved in real estate.

You can assess the competence of the trainers by consulting their professional profiles, which are generally available on the training institution's website. Look for trainers who have proven experience in the sector, as well as recognized academic and professional qualifications. Trainers must also be able to transmit their knowledge clearly and engagingly, and provide concrete examples drawn from their own experience.

## **4. Reviews and testimonials from former students**

Reviews and testimonials from former students are a valuable source of information for evaluating the quality of a training program. This feedback can give you an overview of the learning experience, the relevance of the content, and the support offered by the institution.

Former students can share their opinions on various aspects of the program, such as the clarity of the courses, the availability of trainers, the quality of educational resources, and the practical application of the acquired skills. Testimonials can also inform you about the impact of the training on their careers, in terms of professional progression, job opportunities, and overall satisfaction.

Online forums, professional social networks like LinkedIn, and the websites of training institutions are good sources for finding reviews and testimonials.

## **5. Success and employability rates**

Another important indicator is the student success rate and their professional integration after the training. A good training program should show a high success rate in certification exams and a strong employability rate for graduates.

The employability rate is particularly crucial in the real estate sector, as it reflects the alignment of the training with the needs of the job market. You can ask the training institution for statistics on the placement of their graduates, including the types of positions obtained, the average time before employment, and the sectors in which graduates are employed.

A program with a high professional integration rate demonstrates that the skills taught are in demand and that the training is well regarded by employers.

## **6. Support and educational resources**

A good training program must also offer adequate support to students, whether through quality educational resources, access to digital libraries, or online simulation tools. Student support, such as help with exam preparation, revision workshops, and career services, is also an important aspect.

The institution must offer a favorable learning environment, with modern and accessible infrastructure, as well as personalized guidance to help students overcome academic and professional challenges.

## **7. Reputation of the training institution**

Finally, the reputation of the training institution is a significant criterion of choice. A well-established institution with a long history of success and recognition in the real estate sector is often a guarantee of quality. Reputation can be evaluated by consulting institution rankings, partnerships with companies in the sector, and participation in professional events.

Recognized institutions, such as the **Lycée Josy Barthel** for its BTS Professions Immobilières or **House of Training** for its continuing education programs, enjoy an excellent reputation in Luxembourg and are highly respected by employers in the real estate sector.

## Conclusion

Evaluating the quality of a real estate training program in Luxembourg requires an in-depth analysis of several factors, ranging from accreditation and program content to the competence of the trainers and testimonials from former students. By taking these criteria into account, you will be able to choose a training program that not only meets your professional needs but also allows you to succeed and advance in the Luxembourgish real estate sector.

How to Evaluate the Quality of a Real Estate Training Course in Luxembourg

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Obtaining a certification in the real estate sector in Luxembourg is a rigorous process that requires careful preparation. These certifications are designed to ensure that professionals have the necessary skills to practice in this complex and constantly evolving field. In this article, we will explore the different steps of preparing for real estate certification exams, providing practical advice to maximize your chances of success.

## **1. Understanding real estate certification requirements**

Before starting your preparation, it is essential to fully understand the specific requirements of the certification you wish to obtain. Real estate certifications in Luxembourg cover various areas, such as real estate agency, condominium management, and real estate valuation, among others. Each certification has its own eligibility criteria, exam topics, and training requirements.

For example, to obtain a real estate agent certification, it is necessary to complete an approved training program that covers the legal, technical, and commercial aspects of the profession. Candidates must also pass an exam that assesses their knowledge in these areas. Similarly, for the condominium management certification, candidates must demonstrate an in-depth understanding of condominium laws, as well as skills in financial management and conflict resolution.

## **2. Choosing the right training program**

Training is a crucial step in preparing for real estate certification exams. It is important to choose a training program that is not only approved by the competent authorities but also fits your needs and schedule. Several institutions in Luxembourg offer specific training for real estate certifications, with some even providing online courses for greater flexibility.

When choosing a training program, ensure that it covers all the topics that will be assessed during the exam. Training should include courses on real estate law, taxation, property management, sales techniques, as well as more technical aspects like urban planning and construction standards. A good training program should also offer mock exams and exam simulations to help you familiarize yourself with the format and content of the exam.

## **3. Organizing your time and study schedule**

Preparing for a certification exam requires good organization. It is recommended to start preparing well in advance to avoid last-minute stress. Create a revision schedule that will allow you to cover all topics comprehensively.

Start by identifying your strengths and weaknesses. Dedicate more time to the areas where you feel less confident, while regularly reviewing the subjects you have already mastered. A well-structured schedule should include daily study sessions, rest periods, and mock exams to evaluate your progress.

Do not forget to incorporate breaks and relaxation moments into your schedule. Exam preparation can be stressful, and maintaining a balance between work and relaxation is important to stay effective.

## **4. Practicing with mock exams and case studies**

One of the best methods to prepare for certification exams is to practice with mock exams and case studies. Mock exams allow you to familiarize yourself with the exam format, the type of questions asked, and the allotted time for each section. This can also help reduce exam-related anxiety by placing you in a real-life situation.

Case studies, on the other hand, are particularly useful for certifications that require practical skills, such as condominium management or real estate valuation. They allow you to put your theoretical knowledge into practice in real or simulated scenarios, which is crucial for passing the exam.

During your revision, try to recreate exam conditions by timing yourself and working in a quiet environment. Then, analyze your results to identify areas for improvement and adjust your preparation accordingly.

## **5. Staying informed about market developments and regulations**

The real estate sector is constantly evolving, and it is essential to stay informed about the latest market trends and regulatory changes. Real estate certification exams in Luxembourg often include questions on current laws and regulations, as well as current market practices.

To stay up to date, regularly consult specialized publications, attend seminars or conferences, and participate in continuing education. You can also join professional associations that offer valuable resources and regular updates on industry developments.

## **6. Interacting with certified professionals**

Another way to effectively prepare for certification exams is to interact with professionals who are already certified. They can offer practical advice, share their experiences, and give you an overview of the exam's expectations.

Professional networks and real estate associations are great ways to meet other professionals in the sector. You can also participate in online forums or specialized discussion groups to ask questions and get advice.

By talking with certified professionals, you can also gain information on common mistakes to avoid and strategies for passing the exam. Their experience can help you better understand what is expected of you and prepare accordingly.

## **7. Stress management and mental preparation**

Mental preparation is an often-overlooked but crucial aspect of preparing for certification exams. Stress and anxiety can affect your performance, even if you are academically well-prepared. It is therefore important to develop strategies to manage stress and stay calm during the exam.

Practicing meditation, breathing exercises, or even positive visualization techniques can help reduce anxiety. It is also important to ensure you sleep well and maintain a balanced diet during the revision period and before the exam.

Finally, adopt a positive attitude. Believe in your preparation and your abilities. Remember that the exam is a step toward recognizing your expertise and acquiring new professional opportunities.

## **8. Taking the exam: practical advice for the big day**

On the day of the exam, make sure you arrive well-prepared and on time. Bring all required documents, such as your ID and your exam confirmation. Take the time to carefully read the instructions before starting the exam.

Manage your time well during the exam. If you get stuck on a question, move on to the next one and come back to it later if time permits. Stay focused and try not to get distracted by what is happening around you.

Finally, trust your preparation. You have dedicated time and effort to prepare, and now it is time to put your knowledge to the test.

## **9. After the exam: evaluation and next steps**

Once the exam is over, take the time to reflect on your performance. If you pass, congratulations! You are now certified and ready to advance in your real estate career. If you do not obtain the certification this time, do not get discouraged. Identify the areas where you faced difficulties and prepare to improve them for the next time.

In conclusion, preparing for real estate certification exams in Luxembourg requires rigorous planning, a commitment to continuing education, and good stress management. By following this advice and preparing strategically, you will increase your chances of success and position yourself as a competent and recognized professional in the real estate sector.

How to Prepare for Real Estate Certification Exams in Luxembourg

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The real estate sector in Luxembourg, as in many other countries, is booming and evolving rapidly. This dynamic market is influenced by factors such as economic growth, the increasing demand for housing, as well as the growing internationalization of the country. In this context, professional certification has become a crucial element for real estate players, as it guarantees a high level of competence and professionalism.

## **1. The central role of certifications in a rapidly evolving market**

The Luxembourg real estate market is one of the most competitive in Europe. Due to the country's economic attractiveness and its status as an international financial center, Luxembourg attracts a large number of foreign investors, which stimulates the demand for high-quality real estate services. In such an environment, certifications play a key role in allowing professionals to stand out.

Certifications in the real estate sector are generally perceived as a sign of credibility and competence. They show that the professional has acquired a certain level of knowledge and expertise, which is essential in a field where transactions can be complex and often involve significant financial amounts. Clients, whether buyers, sellers, or investors, are increasingly demanding and seek to surround themselves with professionals who have demonstrated rigor in their training.

## **2. A response to regulatory and legal requirements**

In Luxembourg, as in other European Union countries, the real estate sector is subject to strict regulation. Real estate professionals must not only comply with national laws but also adhere to European directives that govern real estate transactions, consumer protection, and market transparency.

Certifications play a key role in ensuring that real estate professionals are up to date with the latest legal and regulatory requirements. For example, Luxembourg legislation requires real estate agents to obtain a business permit, which can only be granted if certain competence and training conditions are met. Certifications therefore serve as proof that these conditions are fulfilled.

Furthermore, in a context where laws and regulations change frequently, certifications provide a way for professionals to stay informed and compliant. They often include continuing education programs that help professionals keep their skills up to date and adapt to market changes.

## **3. A guarantee of trust for clients and partners**

Trust is an essential factor in the real estate sector. Real estate transactions, whether they involve buying, selling, or renting, represent significant financial commitments and major life decisions for clients. Therefore, they look to surround themselves with professionals they can trust.

Certifications are a guarantee of this trust. They indicate that the professional has undergone rigorous training, is committed to continuous improvement, and is recognized by their peers as having a high level of competence. This can reassure clients and encourage them to choose a certified professional over another.

Furthermore, certifications are also important for establishing solid professional partnerships. In a sector where collaboration between different players is frequent—developers, banks, investors, notaries—being certified can facilitate the creation of partnerships based on mutual trust and respect for professional standards.

## **4. A competitive advantage on the market**

In a market as competitive as Luxembourg's, standing out from other professionals is essential to attract and retain clients. Certifications offer a significant competitive advantage by proving that the professional has invested in their training and is capable of providing high-quality service.

In addition, certain certifications allow professionals to specialize in specific areas of real estate, such as co-ownership management, real estate valuation, or the sale of luxury properties. These specializations can open up new market opportunities and allow the professional to position themselves in segments where competition is less fierce.

Certifications are also an important lever for career advancement. They provide access to positions of responsibility, increase income, and strengthen one's reputation in the sector. Increasingly, employers favor certified candidates, knowing they can rely on competent and well-trained employees.

## **5. The main certifications in the real estate sector in Luxembourg**

Several certifications are recognized in the real estate sector in Luxembourg. Among the most important are:

- **Real estate agent certification**: Mandatory to practice the profession of real estate agent in Luxembourg, this certification is issued after completing specific training and passing an exam. It guarantees that the real estate agent has the necessary knowledge in real estate law, taxation, property management, and sales techniques.

- **Co-ownership management certification**: This certification is essential for professionals wishing to specialize in the management of co-owned buildings. It covers areas such as applicable legislation, the financial management of co-ownerships, and conflict resolution among co-owners.

- **Real estate expert certification**: Intended for professionals wishing to specialize in real estate valuation, this certification attests to skills in real estate market analysis, valuation techniques, and knowledge of current regulations.

## **6. Challenges and perspectives for real estate certifications**

Despite their importance, certifications are not without challenges. The main challenge lies in the need to keep certifications up to date. Professionals must regularly undertake continuing education to ensure their skills remain relevant in a constantly evolving market.

Furthermore, obtaining certain certifications can represent a significant investment of time and money. However, this investment is largely offset by the benefits that certifications offer in terms of credibility, client trust, and career opportunities.

In the future, it is likely that certifications will continue to gain importance in the real estate sector in Luxembourg. With increasing regulatory requirements and the growing complexity of the market, certifications will increasingly be perceived as indispensable to practice in this field. They could also evolve to include new skills, particularly regarding digital technologies and sustainability, which are becoming increasingly important in the real estate sector.

The Importance of Certifications in the Real Estate Sector in Luxembourg

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_Luxembourg, although small, possesses a real estate market that, despite being more modest in size than those of its neighbors, has always attracted significant interest. Just a few years ago, the supply of properties for sale was extremely limited, and properties sold at great speed, despite often overvalued prices. This phenomenon is typical of seller's markets, where demand is particularly strong and access to credit remains relatively easy. However, in 2023, the dynamics changed. Due to rising interest rates, the market transitioned into a buyer's market: demand dropped drastically, while supply increased. Real estate signs stayed visible on building facades for longer, and transactions became rarer. So, can we expect a paradigm shift in 2025?_

Indeed, several factors seem to have come together to allow the market to rebound, provided it follows its natural development cycle. If we consider that the market experienced a phase of decline between 2023 and 2024, it should then enter its rebalancing phase before moving on to a recovery phase. Our analyses, both in the field and theoretical, confirm that we could be on the verge of the final price adjustments. The rebalancing phase seems to have already begun in mid-2024, and it could continue into 2025, before turning into a recovery phase by the end of the year. But what is this optimism based on?

First, interest rates are expected to continue falling throughout the year. This drop in rates could provide households with greater purchasing power when acquiring a property. Furthermore, prices for existing properties have fallen sufficiently, which increases the chances of finding properties at more accessible prices.

Let us take the example of a city apartment whose value had reached 1 million euros at the market's peak. By borrowing 1 million euros at a rate of 1.2%, with no down payment, the buyer had to repay 3,340 euros per month over a period of 30 years. If this same property has lost 20% of its value and the buyer now has to borrow 800,000 euros instead of 1,000,000, and the repayment term remains the same at a rate of 3%, the monthly payments would now be 3,380 euros. Thus, although the value of the property has decreased, the monthly repayment remains almost identical, which means that the market has reached an equilibrium point. On average, the drop in real estate prices in Luxembourg is around 20%.

It is for this reason that we believe 2025 will be the year equilibrium is restored, and that a rapid recovery will follow. Of course, this scenario relies on an essential condition: that interest rates continue to fall and stabilize around 2.5% by the end of the year. As for negative scenarios, two possibilities remain. The first would involve an even sharper drop in rates, down to 1.5%, which would lead to a rapid rise in prices and prevent the market from following its normal development cycle. On the other hand, if rates are increased again after a drop, a further price reduction would be necessary to find a new equilibrium. This scenario could have disastrous consequences for the real estate market, risking a sharp drop in its value. Nevertheless, we remain optimistic and estimate that the market recovery will take place between 2025 and 2026.

P.S. In this article, we focus solely on existing properties; the new-build real estate market is a topic we will cover in a separate article.

Will real estate prices finally stabilize in Luxembourg in 2025?

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_At the beginning of 2025, the effective variable rate in Luxembourg averages 4.22%, while fixed rates are 3.29%, 3.37%, and 3.74% for respective terms of one to five years, five to ten years, and over ten years. The European Central Bank (ECB) plans to continue lowering its rates starting in the first quarter of 2025, with an expected reduction of 50 basis points, or 0.5%. Although the ECB's key interest rate remains lower than the rates practiced on the market, it is reasonable to expect a similar reduction in market rates._

If this drop is confirmed, it would mark a significant turning point, as for the first time since 2023, rates are expected to fall below the 3% mark. This development could have a major impact on the real estate market. Many potential buyers have postponed their purchasing plans due to high interest rates. If these candidates become active again, it could revive the momentum of the real estate market.

**The impact of falling rates on the real estate market**

The price correction observed in the Luxembourg real estate market in recent months opens up attractive new prospects for future homeowners. This period could represent an ideal opportunity to invest in one's dream home, especially if rates continue their downward trend. The stabilization of interest rates at lower levels would facilitate homeownership for a larger number of buyers, even if inflation has already impacted purchasing power.

Although inflation has had a negative effect on residents' purchasing power, an easing seems to be on the horizon. This favorable development has allowed the ECB to confirm the continuation of its rate-cutting policy, which could further stimulate economic activity.

**Economic outlook for 2025**

The economic outlook for 2025 appears optimistic. The ECB is expected to continue its key rate reduction cycle. The market even anticipates that the fixed rate, currently at 3.29%, could drop to 2.29% by the end of 2025. This anticipation is already factored into the projections influencing the 10-year rate at the beginning of 2025. However, for this momentum to be sustained, negative economic factors could prompt the ECB to adopt an even more accommodative policy.

A key factor in defining the equilibrium of long-term rates will be the ECB's stance on the neutral rate, an essential metric for the market. According to recent statements from the ECB, the neutral rate range could vary between 1.75% and 2.5% according to C. Lagarde, and between 2% and 3% according to I. Schnabel. In short, it is likely that the influence of key interest rates on long-term rates will be less pronounced in 2025 compared to previous years.

**Opportunities ahead in 2025**

In a context where inflation seems to be slowing down and the ECB is pursuing its rate-cutting cycle, the year 2025 could offer attractive opportunities for both investors and real estate buyers. If rates continue to fall, this could spark a significant recovery in the real estate market. Potential buyers would thus have the opportunity to carry out their real estate projects under more favorable conditions. Consequently, the economic outlook for 2025 is positive, with an expected return to significantly lower rates, stimulating both consumption and investment.

A Positive Outlook for Falling Rates in 2025

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Managing an international real estate portfolio from Luxembourg requires a well-thought-out strategy, including geographic diversification, active risk management, and the use of technological tools to track performance in real time.

## **1. Geographic diversification**
Diversifying real estate investments across multiple international markets helps reduce risks associated with local market volatility, regulatory changes, or country-specific economic crises. Luxembourg investors should consider allocating their portfolio across different continents, choosing mature markets for stability and emerging markets for growth. This includes exploring markets in Eastern Europe, Asia-Pacific, or Latin America, where attractive yield opportunities may exist.

## **2. Risk management**
Proactive risk management is essential for an international portfolio. This includes analyzing political, economic, and currency risks in each market, as well as real estate-specific risks, such as value fluctuations, regulatory changes, and natural disasters. Investors must regularly evaluate the performance of their assets and adjust their investment strategy accordingly. The use of hedging instruments, such as options and futures contracts, can also protect against adverse market fluctuations.

## **3. Tax optimization**
Luxembourg offers significant tax advantages for international investments, particularly through its numerous double taxation treaties. Investors should work with tax advisors to structure their investments in a way that minimizes taxes while complying with local and international laws. This may include creating suitable investment structures, such as investment companies with variable capital (SICAV) or investment funds, which can benefit from favorable tax regimes.

## **4. Use of technology**
Technological tools, such as online property management platforms and performance tracking software, make it possible to effectively manage a diversified portfolio on an international scale. These tools offer features such as tenant management, predictive maintenance, and profitability analysis, which helps investors make informed decisions and maximize their returns. Integrating advanced data analytics and artificial intelligence can also provide valuable insights into market trends and tenant behaviors.

## **5. Collaboration with local experts**
Collaborating with local professionals in each target market is crucial. These experts, whether property managers, real estate agents, or lawyers, can provide valuable information on local markets, regulations, and best practices. They can also ensure the day-to-day management of properties and handle administrative and legal aspects in compliance with local laws. Furthermore, these partnerships allow investors to benefit from a local contact network that can facilitate future investment opportunities and collaborations.

## **6. Regular portfolio evaluation**
A regular evaluation of the real estate portfolio is essential to ensure that investments remain aligned with long-term financial goals. This involves analyzing the performance of each asset, assessing market trends, and determining whether adjustments are necessary. Key performance indicators (KPIs), such as rental yield, asset valuation, and occupancy rates, must be closely monitored to ensure effective management.

## **7. Sensitivity to market trends**
Being attentive to real estate market trends, such as the growing demand for sustainable and eco-friendly properties, can provide a competitive advantage. Adopting sustainable real estate practices and integrating green technologies can not only enhance asset value but also attract environmentally conscious tenants, thereby increasing occupancy rates and yields.

## **8. Preparation for the unexpected**
Finally, preparing for unforeseen situations is essential. This can include creating financial reserves to cover unexpected expenses, such as urgent repairs or prolonged vacancy periods. Investors must also consider different economic scenarios and develop contingency plans to deal with crises, whether economic, political, or environmental.

In conclusion, managing an international real estate portfolio from Luxembourg is a complex undertaking that requires strategic planning and constant attention. By applying these best practices, investors can maximize their chances of success and achieve their long-term investment goals.

Managing an International Real Estate Portfolio from Luxembourg

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As of January 1, 2025, electricity and gas bills in Luxembourg will undergo major changes due to several factors:

**Reduction in State subsidies**
Although the government has decided to maintain subsidies to stabilize electricity prices, their amount will be reduced compared to previous years. This decrease will lead to a direct increase in bills for many consumers.

**New tariff structure**
Costs related to the use of the electricity grid will now be calculated based on the power capacity used, in addition to energy consumption. This reform aims to encourage a more responsible use of energy-intensive equipment, such as electric vehicles or heat pumps, which often generate consumption peaks.

**Increase in grid fees**
Electricity grid usage fees will also increase, which will further drive up the total amount of the bills.

## What is the impact on individuals?

**Average 30% increase in electricity bills:**
Households consuming less than 25,000 kWh per year and benefiting from State subsidies will see their bills increase by an average of 30%. This rise is due to the reduction in subsidies and the introduction of the new pricing based on the power capacity used.

**Average 16% increase in gas bills:**
The bills of Luxembourg households will increase between 14% and 17%. This estimate stems directly from price developments on derivative markets and the supply strategies adopted by energy providers in Luxembourg.

## Impact on property values

The tariff changes could also influence the value of real estate:

**Energy-efficient properties in high demand:**
Properties with low energy consumption, particularly those with an A or B energy rating, will better retain their value. This type of property will become a priority choice for investors and buyers in the coming years.

**Properties requiring renovation under pressure:**
Older, poorly insulated, and gas-heated properties risk losing their appeal unless they undergo significant energy upgrades. Renovations aimed at improving energy efficiency will be essential to maintain or increase the value of these properties.

**Adapting consumption: a priority**
It is essential for all consumers to take these developments into account and adopt more responsible habits to control their expenses. Investing in more energy-efficient equipment, optimizing appliance management, and considering energy-efficiency renovations are key actions to reduce the impact of these changes.

Energy Prices to Increase in Luxembourg Starting January 2025

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Buying real estate in Luxembourg presents specific challenges for non-residents. The main obstacles include the complexity of administrative procedures, the language barrier, and understanding local regulations. Non-residents must also navigate tax issues, such as double taxation, and manage the strong competition on the Luxembourg market where supply is often limited compared to demand. Finally, financing can be another challenge, as Luxembourg banks may impose stricter conditions on non-residents for obtaining mortgages.

## **1. Understanding local regulations**
Real estate regulations in Luxembourg can differ considerably from those in a non-resident's home country. Legislation regarding property, zoning, and urban planning must be well understood to avoid costly mistakes. For example, co-ownership rules or restrictions on purchasing land can surprise foreign investors. It is therefore crucial for non-residents to work with lawyers or notaries specializing in Luxembourg real estate law.

## **2. Language and cultural barriers**
The language barrier can complicate negotiations, the understanding of legal documents, and interactions with local authorities. Even though Luxembourg is a multilingual country, contractual details are often in Luxembourgish, French, or German, which can pose comprehension problems for English-speaking non-residents or those of other nationalities. Moreover, cultural differences in negotiation practices and expectations can add an extra layer of complexity.

## **3. Financing and credit**
Obtaining financing for a real estate purchase in Luxembourg can be more difficult for non-residents. Luxembourg banks may require additional guarantees or offer less favorable terms, such as higher interest rates or a larger initial down payment. Furthermore, non-residents often have to prove their solvency with financial documents from their home country, which can prolong the loan approval process.

## **4. Taxation and double taxation**
Taxation is another major challenge for non-residents. Although Luxembourg has signed tax treaties with several countries to avoid double taxation, it is essential to understand how these agreements apply to rental income, real estate capital gains, and inheritance tax. Working with a specialized tax advisor is often necessary to optimize the tax structure of the purchase.

## **5. Remote management**
Managing a property remotely poses logistical challenges. Non-residents often need to use local property managers to ensure that the property is maintained, tenants are managed, and legal obligations are met. This remote management can lead to additional costs and complications if not well organized.

## **6. Competition and price pressure**
The Luxembourg real estate market is characterized by strong demand, particularly in urban areas like Luxembourg City, where prices are among the highest in Europe. Non-residents often find themselves in direct competition with local buyers and other foreign investors, which drives up property prices. In addition, the scarcity of buildable land exacerbates this pressure, making it difficult to find a good investment opportunity at reasonable prices.

## **7. Timeframes and administrative processes**
Administrative procedures for acquiring property in Luxembourg can be long and complex, especially for non-residents who are unfamiliar with local systems. Formalities include title verification, obtaining the necessary permits, and compliance with urban planning regulations. Timeframes can be extended if additional documents are required, particularly for non-residents, who often must provide proof of their identity and solvency from abroad.

## **8. Additional legal precautions**
Buying real estate in Luxembourg requires special vigilance on the part of non-residents. It is imperative to ensure that all stages of the transaction are carried out in compliance with local laws. In addition to notaries and lawyers, it can be useful to call upon local real estate experts to guarantee that the property has no hidden defects and that all legal aspects, such as sales or rental agreements, comply with local standards.

## **9. Investment opportunities despite the challenges**
Despite the numerous challenges, buying real estate in Luxembourg presents real opportunities for non-residents. The country's economic stability, its attractiveness to expats, and its continued population growth create a dynamic and promising market for those willing to overcome the administrative and financial obstacles. Well-prepared investors can benefit from attractive rental yields and long-term capital appreciation, particularly in high-demand areas.

## **10. Long-term planning**
Real estate in Luxembourg, due to its high prices and strong demand, can be a profitable long-term investment for non-residents. However, this requires careful planning. It is essential to consider potential market fluctuations, changes in real estate regulations, and demographic trends to maximize the benefits of a long-term investment. The support of local experts throughout this process is often the key to a successful investment.

In summary, buying real estate in Luxembourg for non-residents represents a complex but potentially rewarding process. By overcoming administrative, legal, and financial obstacles with the help of local professionals, foreign investors can access a stable and growing market, conducive to attractive returns.

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