Real estate in Luxembourg: the rise in interest rates is becoming a reality
31 October 2022 · Secretimmo · 2 min read
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.
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Off-market property with Secretimmo in Luxembourg
Secretimmo is a hybrid estate agency specialised in off-market sales in Luxembourg: the properties we handle are never listed on portals, never promoted on social media and never displayed in a shop window. Each home is introduced individually to qualified buyers whose financing and search profile have been checked beforehand. This protects the owner's privacy, prevents the property from going stale on the open market and preserves its full negotiating value.
Selling discreetly does not mean selling for less. Everything starts with a documented valuation based on transactions actually recorded in the district concerned, the usable surface, the condition of the property, its orientation and its energy performance. That figure becomes the basis of a targeted matching strategy: a handful of meaningful viewings instead of dozens of pointless visits, a negotiation led on objective criteria and a controlled timeline through to the signature at the notary.
For buyers, joining our confidential network means receiving early access to homes that will never be advertised publicly: family houses, high-end apartments, building plots and new developments in Luxembourg City and across the country. You can have your property valued free of charge, register your buying project or simply ask us a question — every request is answered personally and confidentially.
Our team works across the whole Grand Duchy, from the districts of Luxembourg City to Esch-sur-Alzette, the Kirchberg area, the Moselle valley and the northern communes. We advise owners preparing a sale after an inheritance, a separation or a move abroad, as well as investors comparing rental yields between localities. Fees are fixed, communicated before anything starts and payable only once the sale is signed, so you always know where you stand before committing to anything.