Real estate in Luxembourg: the rise in interest rates is becoming a reality

Since the end of 2021, property loan rates in Luxembourg have been on the rise, with the largest increase in more than three years and expected to continue into 2022. Shortly before the end of the year, the fixed rate for a 20 to 30 year mortgage loan was around 1.4%, compared to 1.8% at the beginning of 2022, and even slightly higher than 2% at some banks. The rate could reach 2.5% at the end of 2022, according to the estimate of certain professionals. The ability to buy a property in Luxembourg is slightly reduced due to the lower capital borrowed, in addition to the higher monthly payments.

What impact does this have on your situation? Is this the right time to buy?

This recent increase does not facilitate any real estate investment and is an additional constraint for future buyers in the Luxembourg market. Indeed, in addition to a real estate market already saturated by demand, faced with a supply that is struggling to keep up, individuals wishing to invest are faced with ever higher prices. It is therefore the right time to buy and set the price as well as the conditions of the loan.

How to negotiate the best rates?

Our partner can help you study your financial situation and offer you the best alternatives in terms of mortgage: a tailor-made solution with a fixed and a variable part to allow you to secure your loan and your situation as much as possible against inflation. One contact for a multitude of possibilities who will offer you a complete market study of all the banks in the area with the best conditions available on the market.

For more information, contact us. We have a portfolio of properties and real estate investment solutions of all types and for all budgets.