Luxembourg offers great economic stability by promoting, over the decades, the fruitful development of targeted sectors of activity: extractive and manufacturing industries after the Second World War, European institutions, the banking sector, that of investment funds.
The economy is definitely looking to the future by constantly reinventing itself; the latest developments target space extraction, biomedical research and computer science.
Luxembourg has signed an international convention against double taxation with a few dozen countries.
Luxembourg's Triple AAA was once again confirmed by three rating agencies last September.
The population is growing steadily, with a net increase of over 10,000 people each year. This can be explained in particular by the regular arrival of foreigners that Luxembourg attracts each year. This population is most often highly qualified.
Demand for residential real estate remains strong.
Real estate prices have never gone down in recent decades.
Most of the land is in the hands of private owners, the number of land to be built is insufficient and there are not enough construction projects underway to meet the demand of this constantly increasing population.
The tense situation is reflected in the prices:
Between 4th quarter 2018 and 4th quarter 2019 the price of old apartments increased by 12.1%, that of new apartments: + 12.4%, that of old houses + 9.1%.
Between 3rd quarter 2019 and 3rd quarter 2020 the price of old apartments increased by 15.7% with an average price of 9,477 euros / m2 in the capital; that of new apartments: + 16.7% with an average price of 11,035 euros / m2 in the capital.
The rental market is very active thanks to the new arrivals and a return on investment of 3% on average more attractive than the bank interest rates currently charged.
An investment begins with a thorough study of the market. Contact us to discuss it!