Real Estate: the cross-border alternative for Luxembourgers

The Grand Duchy's real estate market is in the throes of an unprecedented crisis. For years, demand outstripping supply has led to ever-increasing prices, albeit offset by low bank rates. The vitality of the Luxembourg economy was reflected in high transaction volumes and the construction of ever-growing numbers of apartment buildings or individual homes.

The pandemic and then the war in Ukraine (rising energy and raw materials prices, falling financial visibility in the medium term) have undermined this model. Homeowners are reluctant to lower their asking prices, banks are much more hard-faced about granting loans, and loan interest rates have risen from an average of 1.5% to 4.25 or 4.5%... This is a perfect storm for professionals in the sector: developers are finding deals cancelled every day and some agencies whose turnover has fallen are letting staff go or closing altogether.

And as for potential buyers, they are putting their dreams on hold in the hope of better days to come.

Against this background, is total pessimism all there is? Absolutely not! If you want to become a homeowner, there are alternatives.

All you have to do is broaden your perspectives and think about France and, in this case, the north of Lorraine (départements of Moselle and Meurthe-et-Moselle). In other words, a swathe of land going from Longwy to Sierck-les-Bains via Thionville. There, real estate remains in plentiful supply and prices are still reasonable (overall, well below those in Luxembourg). Added to this are lower loan interest rates and on the transport side, road and rail links are in better shape than they were 5 or 10 years ago…

And if you don't want to buy in France, you can still borrow from a …French... bank. As long as your employment situation and credit-worthiness meet the bank's standards, there is nothing to prevent you from taking this route. At the moment, moreover, loan rates in France have not reached those of the Grand Duchy and are currently just below the 3% mark.

The ideal thing, however, is to seek the advice of professionals who specialize in this type of transaction, both legally and financially. Lux Kredit is one such specialist, a brokerage agency based in Frisange. Its experts have built relationships of trust on both sides of the border. They have the expertise to support you every step of the way in your real estate purchase in the Grand Duchy or in France via a Luxembourg or French bank; but not only that, they know how to make the best-possible approach to organizations that agree, for example, to spread repayment terms over more than 30 years.

Experienced brokers, with in-depth knowledge of the real estate market and the mortgage sector on both sides of the border, Lux Kredit's professionals are the ideal future partners to help you change your life up. Crisis? What crisis?

You are looking for tailor-made advice and support from financial professionals, you want to save time... we take care of all the steps for you to carry out your project in the best market conditions. Send us your request with a few clicks and we will take care of the rest!