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The capital of Luxembourg is once again the winner of the price per square meter of existing and new apartments.

After being replaced by Bertrange in 2020, the capital of Luxembourg has once again become the most expensive municipality in the country in 2021.

The latest figures from the Observatoire de l'Habitat indicate that as of June 30, 2021, the average price per square meter of existing apartments reached 10,753 euros, while that of VEFA (under construction) peaked at 12,044 euros.

These averages are based on the 946 transactions recorded in the Luxembourg capital from July 1 to June 30, 2021.

It should be noted that Luxembourg also had the highest turnover during this period.

### OF A MAXIMUM OF 16,489 EUROS PER SQUARE METER!

If we look at the price ranges announced by the Observatoire de l'Habitat in its latest report, we can see that the price per square meter has reached up to 16,489 euros in the capital (VEFA).

On the side of the existing apartments, the price of m2 has in some cases reached peaks. Indeed, the price range indicates that some properties could be sold up to 14,061 euros per m2.

In comparison, in the municipality of Wiltz, some existing apartments were sold for less than 3000 euros per square meter last year.

Up to € 16,489 per square meter in Luxembourg

The capital of Luxembourg is once again the winner of the price per square meter of existing and new apartments

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In Luxembourg, people who wish to rent an apartment or a house have the possibility to receive financial aid from the State in order to realize their project. At a time when it is difficult to find suitable housing, when the real estate market is tight and demand often exceeds supply, subsidies can be an important tool to convince the landlord and maintain financial flexibility.

### 2 Financial instruments: State aid to provide a rent guarantee and a rent subsidy as monthly assistance.

When entering into a rental agreement, the tenant must pay a rent guarantee to the landlord. This can be up to three months' rent. The landlord wants to protect himself against potential damage to the property and against additional costs if the tenant's consumption is higher than the reduction in charges.

If you have difficulties in raising this amount, you can apply for financial assistance from the Luxembourg government. To do this, fill in the official application form for financial aid from the state and send it to the one-stop shop for housing aid.

However, you can only obtain this aid if you have concluded a rental contract that complies with Luxembourg law. In addition, the accommodation must be on the private property market and serve as the tenant's permanent main residence.

To be eligible for financial aid, you must not be the owner, co-owner, usufructuary, emphyteutic lessee or holder of a right of emphyteusis of another property in Luxembourg or abroad.

The state aid for the rental guarantee is reserved for adults who open a conditional deposit account with a credit institution. In addition, the condition is that the rent does not exceed 40% of the monthly income and that the monthly income of the tenant is below a defined ceiling.

State assistance in providing a rental guarantee is a one-time payment that is received only after the contract is signed. But there is also a way to save money on rent throughout the year: the so-called rent allowance.

This is between 130 and 300 € per month and is calculated according to the income and composition of the household. The money paid each month is intended to give the recipients more purchasing power.

People who wish to receive this monthly subsidy must rent a private home that meets the health and safety standards in force in Luxembourg. In addition, the housing must not be rented to the applicant household by a direct relative. As for the rent guarantee, the rule is the same: The applicant household must not be the owner, co-owner, usufructuary, emphyteutic owner or holder of a right of emphyteusis for another dwelling in Luxembourg or abroad.

If you wish to receive rental assistance in Luxembourg, the rental contract you signed must comply with the legal requirements of the Grand Duchy. The monthly rent must represent at least 25% of your monthly net family income. You can only apply for the assistance if you have had a regular income for more than three months.

You can also apply for the rent subsidy at the one-stop shop for housing subsidies. Do not hesitate to apply as soon as you have found a suitable accommodation. The rental subsidy covers the costs you incur when you sign the contract, while the rental allowance relieves you of the payment of the rent month after month - from the date you move in.

Subsidies for renters in Luxembourg

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Why and how to sign electronically in real estate?

Still not very widespread in the real estate sector, the electronic signature offers many advantages: time saving, financial savings, increased security, etc. Find out why and how to use this new technological tool.

Like many other sectors, real estate is subject to technological evolution and digitalization. Virtual tours, videos, automation solutions, actions on social networks... Today, technological tools are part of the real estate agent's daily life. Among these innovative solutions, the electronic signature should probably become standard in the coming years.

When we talk about the electronic signature, many questions arise: what is its legal value? What are its advantages? And is it secure? We will try to enlighten you on the subject.

### The electronic signature, what is it for?

The electronic signature is a dematerialized signature, i.e., realized on a digital support. It allows, like a handwritten signature on a physical document, to mark its agreement on a digital document. Concretely, the electronic signature does not have a visual appearance like a handwritten signature but is certified by a cryptographic marking. It allows authenticating the signatory and to guarantee the integrity of the document.

In real estate, the electronic signature makes it possible to sign documents remotely, relating to the sale, purchase, or rental of a property, from any place, and without physical exchange.

### What is the legal value of the electronic signature?

Is the electronic signature an innovative concept? Not really. In Luxembourg, the electronic signature has the same probative value as the handwritten signature since the year 2000.

A new European regulation ("eIDas" for "electronic identification and trust services for electronic transactions") was also introduced in 2016. In particular, it has made it possible to homogenize the various electronic signature standards within the European Union and to draw up a list of organizations willing to issue digital certificates guaranteeing the authenticity of the signature.

What are the advantages of the electronic signature?

The electronic signature is far from being a mere technological gadget. It offers many advantages, in particular that of saving a considerable amount of time in the processing of files since it does not require the physical presence of the signatories.

The use of this technical process implies the installation of an electronic signature software. The proper implementation of this software in your traditional management tools accelerates the processes and gives you more time to perform tasks with greater added value.

### The electronic signature also guarantees the integrity of the document since all modifications are recorded.

In addition to reducing delays, the electronic signature is a significant source of savings (no more printing, scanning, routing costs, etc.). By reducing the use of paper, you will also be able to demonstrate your position in favor of the environment.

Finally, by adopting a pro-technology attitude, you send a positive signal to your clients. It makes your agency look innovative, dynamic, and responsive to your clients' needs for speed, efficiency, and security. Since the practice is not yet widespread, you could also be ahead of your competitors.

### Is the process secure?

Contrary to popular belief, the electronic signature is a more secure process than the handwritten signature. The digital signature is indeed unforgeable, inviolable and its traceability allows it to fight against the risks of money laundering and opaque financing.

In short, the electronic signature is a real lever for accelerating the taking of mandates. This technological advance should therefore become commonplace in the coming years for real estate agencies. So, why not take the plunge now?

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