How to buy a real estate in Luxembourg

The real estate market in Luxembourg has its own characteristics, so it is logical to first choose a suitable location and research prices.

Before analyzing some specifics (for example, the presence of railroads or an airport near the house) and choosing a particular place, it is worth understanding what Luxembourg as a whole is as a place of permanent residence. The country has been divided into cantons, which are subdivided into municipalities. In addition, the cantons are divided into two large regions, each with its own peculiarities.

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Let's learn a little about how to choose a future place to live and what to strive for.

When choosing a house or apartment to buy, it is worth considering this administrative division, as property prices vary according to the municipality in which the dwelling is located.

• The northern part, the Oesling, has traditionally been slightly less expensive than the southern Guttland.
• The most expensive place to live was and is the municipality of Luxembourg, the capital of the Grand Duchy, as well as the canton of the same name, which includes 11 municipalities: Luxembourg, Hesperange, Bertrange, Contern, Niederanven, Sandweiler, Schuttrange, Steinsel, Strassen, Walferdange and Weiler-la-Tour. Learn more about each of them in a separate article.

Finally, you need to look at several agencies and sales services to understand the approximate prices of housing in Luxembourg.

Buying real estate in the Grand Duchy is both a big investment and a profitable one. Housing in Luxembourg is becoming increasingly expensive: demand is high but supply is low.

Average price per m² in the Grand Duchy

The most recent data on real estate prices in the Grand Duchy provides Observatoire de l'habitat, suggesting to focus on the range of 5028 — 12 569 euro/m². In some communes, the cost is significantly higher, in some — significantly lower.

To see the price ranges and average cost per square meter in other municipalities, check out the Luxembourg Housing Observatory report or visit their website directly Observatoire de l'habitat.

Documents

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Luxembourg Housing Observatory statistics on prices and number of apartments sold in each municipality

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Luxembourg Housing Observatory statistics on prices and number of apartments sold in each municipality

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Average prices per m² in the capital

Directly in Luxembourg, the price per square meter is higher than in all other cities and communes. According to the latest data from Immotop.lu, the average price per square meter in the capital was €12,487.

In some neighborhoods in Luxembourg this figure is much higher, in particular in Belair the average cost per square meter is 14,571 euros and in Kirchberg 13,014 euros per square meter. At the same time, Beggen, Dommeldange and Rollingergrund were the cheapest districts in Luxembourg.

Prices per m² in different districts of the city of Luxembourg. Source: Immotop.lu

Average prices for apartments and houses

As far as the budget is concerned, that is to say, what is the price of a finished apartment or house in Luxembourg, it is necessary to take into account the territorial principle (which commune) and the number of rooms (studio, 1 room, 2 rooms, etc.).

As for the capital itself, in Luxembourg you can pay from 700,000 euros for a studio apartment in popular neighborhoods (Kirchberg, for example). And the prices of luxury houses can even reach 5-7 million euros and more.

 according to Immotop.lu

Buying real estate in Luxembourg has its own subtleties. The buyer can only buy the property itself. And the land on which the property is built. You can buy a property with land. It is more expensive, but then you own both the property and the land.

In addition to spending on the property itself, the buyer will need a lot of money for related expenses.

When buying a home, unlike when renting, the buyer does not have to pay an estate agent — it is the seller's responsibility. However, it is necessary to take into account the peculiarities of the Luxembourg market, with high demand and low supply.

The agent will not only help you find a suitable property, but will also check the cleanliness of the property, organize viewings and conduct negotiations on your behalf. However, you should only work with licensed professionals who are familiar with the Luxembourg real estate market.

On your own or with the help of your real estate agent, find a home that meets your requirements. Make an appointment with the owner to view the property in person and assess its condition, location and suitability.

При выборе жилья учитывайте следующие факторы

Transportation Accessibility

How to get to the center, work, etc.

Local Infrastructure

What is nearby: parks, shopping centers, nursery school, school, hospital.

Energy Efficiency

The higher the energy class, the lower the utility costs.

Legal cleanliness

Are there any encumbrances, debts, redevelopment, etc.

General condition

How long ago and what kind of repairs were made, are there any defects

Utilities

Gas, light, water, internet: which are connected and do they work or not?

Ecology

Are there parks and squares nearby, are there no industrial plants, how polluted is the air?

Noise sources

Are there airports, railroads, industrial plants, and other sources of noise nearby?

Safety and Security

What is the crime rate, are there many robberies and other accidents in the area?

These are just the basic points to consider. However, each object should be considered individually, taking into account the specifics of housing: a new house or repeated sale, apartment or low-rise development, availability of parking, whether the negotiation is possible, etc. With these nuances usually helps to understand the real estate agent.

Once you have found a property that meets all your requirements, you need to make an offer to the seller. If you have an agent, all you have to do is let them know that you are satisfied with the property. The agent will then contact the owner, represent your interests and take on the role of negotiator.

The purchase offer must include

Proposed purchase price

Terms of the transaction

Timeline for completing the transaction

Once the seller accepts the offer, the notary must be contacted.

Notaries carry out all real estate transactions in Luxembourg, ensuring their full legality and protecting sellers and buyers from fraud.

Important details

The notary is paid by the buyer 7-10% of the transaction amount

Notary services are not free. According to Luxembourg practice, the notary is paid by the buyer and not by the seller, unless otherwise agreed.

The preliminary contract has full legal force

At the notary, the buyer and the seller sign a preliminary contract (compromis de vente). It specifies the value of the property, as well as fines and penalties for refusing the transaction. In essence, the compromis de vente is a commitment on the part of the buyer to purchase a home. If the property is purchased with a mortgage, it is a commitment to purchase the home subject to the bank's approval of the mortgage application. So that the seller does not have to wait indefinitely, the parties agree in writing on the period within which the buyer will notify the seller of the bank's decision. It is usually 4-6 weeks.

There is a penalty for violating the terms of the preliminary agreement

If one of the parties terminates the contract without having the right to do so, it must pay a lump sum compensation. Usually the amount is set at 10% of the purchase price, i.e. if the price of the property is 640,000 euros, the party who withdraws from the contract must pay 64,000 euros.

The buyer pays a deposit

As a confirmation of his intentions, the buyer usually pays the notary a deposit into a special settlement account. It is usually one tenth of the value of the property to be purchased. Once the deposit has been paid to the notary, it cannot be returned until the buyer and the buyer's family have paid the deposit.

In order to purchase a property, the buyer must provide a basic set of documents.

What documents do you need to buy a real estate in LuxembourgWhat documents do you need to buy a real estate in Luxembourg

Something is missing

Not all documents have been collected for the transaction

*The mandatory items are marked with red asterisks.

Identity Card

Foreign or regular passport of the buyer.

Proof of the legality of the available funds

It is necessary to document that the buyer has money and that it was obtained legally if we are talking about paying for housing in a single payment without loans and mortgages. Such a document is issued by the bank. It confirms the availability of the necessary funds and the right to purchase real estate.

Confirmation of mortgage or loan from the bank

If the buyer takes the property on a mortgage or loan, he must provide a loan or mortgage approval from the bank.

Something is missing

Not all documents have been collected for the transaction

*The mandatory items are marked with red asterisks.

At this stage, the transaction is "slowed down" for a month and a half or two months. During this time, the notary carefully examines the documents submitted by both parties: the buyer and the seller.

Not only the buyer but also the seller may have questions during the inspection.

Examples of situations that due diligence will uncover

If the seller has done illegal renovations, due diligence will uncover this. Or if the seller has yet to disclose that the property has a dark past. Or did not disclose that the house cannot be sold at the moment because it is at the center of a legal dispute about inheritance, etc.

In such cases, the pre-contract will be canceled and the buyer will get his deposit back in full.

If the inspection is successful, the notary will draw up a sales contract based on the preliminary agreement (compromis de vente).

Review and sign the deed in the presence of a notary.

These are the minimum requirements that should be included in the contract.

Once the buyer has paid for the house and received the deed of sale, he is the full owner of the house in Luxembourg.

Do not forget to transfer the payment of the utilities into your name.