housing-prices-luxembourg.jpg

House prices in Luxembourg increased by 9.6% in 2022 as a whole, a lower growth rate than in previous years. However, they fell between the third and fourth quarters, as did the number of transactions. 

Prices for existing houses fell by 1.9%, for existing flats by 2.3% and for existing apartments by 1.4%. The price index for apartments under construction also fell by 0.3%.

If we compare prices in the fourth quarter of 2022 with those of the same period in 2021, they have risen by 5.6%. In one year they have risen by 4.4% for old dwellings, 9.4% for new dwellings and 3.8% for houses. However, these figures correspond to the house price index calculated by Statec on a "constant quality" basis, which neutralises changes in the structure of the properties sold.

**Number of transactions down**

The number of transactions also fell by 14.4% in 2022, with 1,269 flats sold in the fourth quarter of the same year, a 30.4% decrease compared to the same period in 2021. The financial volume of these transactions also fell by 32.5% to 843 million euros.  

**These transactions, recorded on the basis of the passage of the deed, are based on compromises signed between June and August 2022.  To know the real impact of the 2022 transactions (compromises signed in the last quarter), we will have to wait for the figures for the following quarter, which will give us a real indicator of the situation in 2022: a decline in sales that accelerates and is confirmed at the end of the year.**

**Rising interest rates: the trigger**

Despite the fall in property transactions, sales prices remain a major concern for buyers, with annual increases of more than 12 to 13%. These price increases and rising interest rates are eroding buyers' purchasing power.

For example, for every percentage point rise in interest rates, buyers lose 10% of their purchasing power. Banks are also asking for more collateral than before, which puts a heavy burden on buyers.

The residential property market, whether houses or flats, new or old, is affected by this decline. However, the decline is more pronounced for VEFA properties, which are offered at very high prices.

**A special interest in rental: an opportunity for investors**

Rental costs have been rising in the rental sector, a trend that has reversed in recent years. "We see the first signs of an increase in rents for new leases at the end of 2022," says Statec. Rents rose by 2.1% in a quarter and 8% in a year for apartments, and by 4.8% in three months and 6.9% in 12 months for houses.

**This crisis in the property sector could easily become a boon for investors, as interest in renting is on the rise: unable to buy, buyers are turning to the rental market to wait for better times.**

To take advantage of our investment opportunities, contact Secretimmo.  We support our investors by offering them safe and profitable off-market property investments with guaranteed rents.


House prices in Luxembourg fall at the end of 2022

Shutterstock_1724684833 (1).jpg

The COVID episode and the inflation of the cost of living have accelerated the development of co-living as a response to the problem of the constant increase in property prices, while at the same time satisfying the quality of life criteria that have become decisive for occupants in the final choice of their personal housing.

It is a new trend in the property market that responds to a new demand, where conviviality and shared living are more motivating for "residents 2.0", who are above all looking for a living experience based on sharing and exchange, both financially, ecologically and socially.  

**What is co-living?**

Co-living is a form of shared living where people live together in shared spaces (gardens, co-working spaces, terraces, gyms, games rooms, etc.) and private spaces (rooms, suites, studios, small apartments, etc.).  What unites them is a community that they animate and in which they engage socially.

**Co-living: a flexible solution?**

The benefits of co-living are numerous and flexibility is the key.

By providing a dynamic community life and access to shared resources, co-living offers a range of shared services that residents can consume à la carte: meal delivery, neighbour-to-neighbour exchanges, shared car hire, cleaning services, dry cleaning, co-working spaces, activities organised within the residence, etc. Services that can be consumed as and when required.

The other great advantage of this flexibility is that it allows you to change your accommodation more regularly, by having access to short or medium-term leases, giving you the opportunity to try out an environment before making a more formal and definitive commitment.

**Who are these new 2.0 residents?**

This trend is particularly popular with young professionals, new expatriates, students and digital nomads who are looking for flexible and affordable housing solutions with a range of services that they would not have access to if they had to bear the cost themselves.  

An ideal solution for newcomers to a city who want to make connections and expand their social circle. 

**What is the social impact?**

Co-living redefines the notion of shared and engaged community by offering an environmentally friendly solution that reduces the carbon footprint of its residents by using shared resources and limiting individual travel. 

Designed to be sustainable and energy efficient, co-living addresses the growing concern about climate change.

**What about investors?**

If you are looking for a green and sustainable investment with a high return, co-living is the answer! 

As the private areas are smaller and rented individually, the rent is adapted to this type of service. The operators who manage this type of service have their own clientele and a high occupancy rate, which allows them to guarantee the rent for a period defined in a management contract.  

Secretimmo supports its clients and offers them investment projects with guaranteed rentals.  If you would like more information, please contact us. We have the right opportunity for you.

 Shared living: the flexible housing solution for today's changing lifestyles.

photo_renovation.jpg

Buying a fixer-upper can sometimes seem like a risky investment, but it's actually an incredible opportunity for buyers to create a fully customised home and make money at the same time, without the constraints of the new home market such as price escalation and construction delays.

**Here are 5 undeniable benefits of buying a property to renovate:**

**1. High profit potential**

Buying a property to renovate is an excellent investment because you can usually buy it at a lower price than a turnkey property. Once the work is complete, you can resell the property at a higher price or let it at a higher rent, increasing the profitability of your investment.

**2. Personalisation**

Buying a property to renovate allows you to personalise your home according to your tastes and needs. You can design the space to suit your lifestyle and preferences, without being restricted by the choices made by the previous owner(s). In short, you don't have to buy someone else's bad taste and you retain control over the quality and price of the materials.

**3. A chance to save money**

When you buy a property to renovate, you can save money by putting the various parties in competition, but also by calling on your professional network or relatives who can help you to obtain the best prices and why not carry out certain works through your acquaintances.

**4. Give it a second life**

Sustainable construction and ecological footprints are hot topics. Renovation gives a building a second life by improving its energy technology and insulation. 

**5. A rewarding project**

Renovating a property can be a rewarding and challenging undertaking that allows you to immerse yourself in a creative project. You'll work with local tradespeople and have the opportunity to learn new skills.

In conclusion, buying a property to renovate can be a great option for those who are looking to invest in property. 


In conclusion, buying a buy-to-let property can be a great option for those who want to invest in property while creating a personal home without the constraints of a new property. Although it takes effort, patience and some investment, the potential for profit, personalisation, cost savings, improved quality of life and the completion of a rewarding project can be well worth it.

Want to start a renovation project? Contact Secretimmo to find out about our current market opportunities.

Buying a fixer-upper: the alternative to new build

app_splash.jpg

A few months after the launch of their Pocket Estimator, Secretimmo digitalizes, this time, its protocols by proposing a new off-market property sales channel unique in the Grand Duchy: a mobile application available for free on the App Store and Google Play.

By centralizing off-market properties within their application, Secretimmo creates the very first digital platform for off-market properties in the Grand Duchy in a depersonalized form. "Secretimmo App" is aimed at both individual buyers and professionals (buyers, sellers, real estate agencies and promoters) who have, through the tool, a high level of personalization adapting to the profile of each user.

Each user who wishes to access the information of a property, will comply with the verification/validation of their secure profile by our teams, according to our internally established protocols.

>Secretimmo App is a latest generation mobile application, designed and developed to guarantee always relevant results.

### It offers, among other functionalities:

- Continuous search

Each search is saved within the application. The user is notified in advance when a new off-market property is put up for sale that matches his criteria. In push or email mode, the user can choose his preferred mode of alerts at any time.

- Virtual pre-visit of properties

From the application, users can request access to a virtual visit of a property corresponding to their criteria, by simple request from the property sheet. The requests are analyzed and validated by our internal teams.

- Hidden ads

Possibility to customize the list of results, by hiding the properties that do not interest the user, for a list of results that is always relevant and consistent with the user's search.
And many other features to discover by downloading "Secretimmo App" from the App Store or Google Play: create your profile and your searches and be notified of new off-market opportunities!

### The off-market: the right answer to the current real estate market!

The real estate market is currently undergoing a transformation and it is becoming increasingly difficult to determine the exact value of properties for sale. Sellers who do not wish to "burn" the value of their property will benefit from the opportunity to sell their property discreetly while preserving their anonymity (no photos of the property or address).

Launch of Secretimmo App, the only application providing access to off-market properties in Luxembourg.

secretimmos-first-assessment.jpg

### Secretimmo is celebrating its first birthday. What does the first assessment look like?
After a first year in which we gained valuable experience with the off-market business we have perfected and adapted our various protocols to be able to respond to any type of situation and type of client. Our clients' confidence in our concept has enabled us to generate beautiful exclusive sales mandates and to place ourselves in the high-end and prestigious sector in particular.

### How do you find buyers for these properties?
Our various channels allow us to fill our prospect base. This database is mainly generated through our various digital marketing campaigns, press campaigns, our presence on billboards in and around the city, our B2B network, our depersonalised ads on property portals, etc. Our brand is now well known thanks to our communication know-how.

### How do you filter your buyers?
Since discretion is our added value, it is important to ensure that information about our properties is passed on to the right recipients, who are filtered according to our internal protocols.

Using the technologies we employ, they are given time-limited access to detailed information about a property they are interested in. In this way they can be sure if the property could interest them, and if they are genuinely interested, we also check their their creditworthiness prior to a physical visit to the property. The owner has the assurance that each viewing appointment is done with a motivated potential buyer: We avoid property tourism and thus respect the privacy of our selling clients.

### You plan to launch a mobile application in November 2022. Could you tell us a little more about this new tool?
At Secretimmo, we like new technologies and we strive daily to digitalising our customer and prospect journey. Therefore, it was natural for us to launch a platform to centralise both discreet and off-market sales, which is a big first in Luxembourg.

With the help of our application, we have digitalised our security protocols in order to ensure the confidentiality of all properties published in this new environment. Each profile/user account is personally validated by our team, who will carry out the usual checks and, if necessary, guide users through this new interface, which is intended to be simple and intuitive. The first format we have chosen is the application, as it corresponds to current usage habits. Our team is excited and already actively working on it.

### Can a user access properties for sale directly?
Yes, if the user's search criteria match an off-market property for sale, they can access the information about it in the form of a depersonalised listing.

### And if no property currently matches the search criteria?
To simplify the user experience, all searches carried out by the user are automatically stored in the Secretimmo App. He therefore has the option of keeping them or delete them. As soon as a new property matching the search criteria is published on the platform, the user is notified directly by push notification and/or email.

### If a property attracts the user's attention, how can he or she then view it?
If a property catches the user's attention, they can request a virtual tour remotely via the app.

This viewing is temporarily activated after a contact with the agent who analyses the user's request and qualifies whether they are eligible for a physical visit or not.

### What confidentiality conditions has a user to respect?
As all of our properties are sold discreetly, a user must respect the confidentiality of each offer. In essence, the user is not permitted to view the content of these to third parties without the prior written consent of Secretimmo S.A..

### What types of properties can be found on the Secretimmo app?
From the moment a client decides to sell discreetly so as not to be harassed and visible on all real estate platforms, he chooses the way of the “off-market” approach. Also off-market is often preferred by owners of prestigious, exceptional or investment properties, but in reality it concerns all types of properties and all budgets.

### Are only Secretimmo properties published there or can other agencies also publish their offers?
Since our launch, we have built up a large B2B network with professional partners from the real estate industry, but also from other sectors, to whom we offer the possibility to promote their off-market properties through our app.

If a partner broker decides to sell his client's property “off-market” via our app, we will follow up on the sale to match them with a qualified buyer and will accompany him until the signing of the notarial deed.

### Finally, what is my interest in buying a property “off-market”?
If you decide to buy an off-market property, you will have priority to view the property before anyone else and increase your chances of coming across a “rare pearl”. These properties, of which neither photos, plans nor the address have ever been published on the internet are usually better protected from malicious persons and curious neighbours.

Secretimmo's first assessment

launch-of-the-secretimmo-appraisal.jpg

A few months after the launch of our new "off-market" real estate concept, Secretimmo introduces its pocket appraisal in Beta version.

Intended for individuals who wish to have an initial idea of the price of their property, the Secretimmo Pocket Appraisal allows them to quickly estimate the indicative value of a house, a flat or a piece of land in the Grand Duchy of Luxembourg.

Equipped with an algorithm that is based both on the prices communicated by official sources (Liser: notarial deeds) and on the advertisements currently published on the various portals, the tool is intended to be fast, simple, effective and "user friendly". The tool will be perfected over time in order to provide the most accurate results possible to its users.

Designed with "mobile first" in mind, the tool is perfectly adapted to smartphones and tablets: in just a few minutes, you can obtain a relevant result with unlimited use of the tool without any restrictions on the number of estimates.

Estimating a property from a distance is a complex task. Despite the various existing online estimators produced by different market players with their advantages and disadvantages, Secretimmo's Pocket Appraisal aims to guarantee extreme simplicity of use with a consistent result.

As a reminder, Secretimmo is the first off-market agency in the Grand Duchy of Luxembourg to guarantee the confidentiality of its mandates to its clients thanks to the new technologies and the various digital tools it has put in place, as well as its internal protocols for selecting candidates. A concept that leaves no room for real estate tourism, appreciated by anyone who wishes to sell in complete discretion and avoid exposing their property to the general public; or who does not wish to "burn" their property on the market and thus give themselves every chance of selling within a reasonable time.

[Link to the tool](/en/appraisal)

News from Secretimmo, the "off-market" real estate agency and real estate market trends in the Grand Duchy of Luxembourg

Subscribe