We are in the middle of a real estate crisis, nothing sells anymore in Luxembourg!
Oh, really? If that were the case, many more real estate agencies would have gone bankrupt by now.
We're still selling. In Luxembourg, demand remains enormous, the country remains attractive. The supply is far from being able to meet this demand.
Yes, but then, why can't I sell my property?
For some of the properties in our portfolio, there is no movement at all. For others, it's as before, contacts and visits are numerous.
In recent years, prices have risen at a much faster rate than wages. As far as the banks are concerned, "cheap" loans are over. Looking over a longer period, a rate of 4-5% is not abnormal. In the short to medium term, it is highly unlikely that interest rates will fall sharply.
Today, we are witnessing a rebalancing. Supply is slowly returning to a price level that is accessible to the demand. Some do not hesitate to talk about a drop of up to 25%.
For some owners, by choice or obligation, the price is fix. Unfortunately, these properties will not sell. Depending on the case, they will remain on the market for several years or they will be seized by the bank. Even if a buyer is found at a high price, with banks valuing the properties in detail, they no longer support buyers if the property is overvalued. This, even if it falls within the candidates' budget.
Owners who agree to make a step towards the buyers sell their property. This, often with a nice capital gain since the real estate market has historically been very good. The exception to this rule is for properties that have been purchased in the last two years.
Do you want to sell your property? How do you go about it?
Above all, do not consider the prices displayed on real estate portals. They usually give a very overstated idea of reality.
Have the property valued by someone who knows the market. That's the real estate agent's job. He spends 40 hours of his time and more each week on that.
Do you want to buy a property? Where to start?
Go to a credit broker or banks to find out how much you can borrow. This, before starting the visits. We can give you contacts.
Don't think you can offer 20% off for all the properties on the market. Even if many properties are listed at prices that are too high, some are not and are sold very quickly. Making an offer that's too low can cause you to miss out on great opportunities. If you're unsure, seek advice from an agent to represent you.