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_If you are considering purchasing a property in Luxembourg and wondering what interest rates are currently in effect, this article will provide you with all the essential information for your future purchase or real estate investment._

Following the sharp increase in interest rates at the end of 2022, a first significant decrease was observed at the beginning of the current year. Dropping from 4.8% to 3.8%, the mortgage interest rate is becoming increasingly attractive. Some banks even offer rates of around 3.5%, provided that your dossier is solid and the property you're aiming for has a good energy class, ideally A or B.

**Choosing between fixed rates, variable rates, and revisable rates: Which is the best choice?**

In Luxembourg, various types of interest rates are available for mortgage loans:

**Fixed Rates:** The interest rate remains constant throughout the loan term. It is possible to renegotiate this rate during the loan term, but this may incur penalties to the bank.

**Variable Rates:** The interest rate varies based on fluctuations in the financial market. This type of rate was popular in Luxembourg before the sharp increase in interest rates in 2022. Since then, it has become less attractive as it is generally higher than the fixed rate.

**Revisable Rates:** The rate is fixed for a certain period (e.g., three years) and then becomes variable for the remainder of the loan term. When the revisable period expires, it is possible to renegotiate the loan and switch to a more advantageous fixed rate, provided that interest rates have decreased during this period.

Each type of interest rate has its pros and cons, and the choice will depend on your personal financial situation, risk tolerance, and outlook on interest rate movements. Before making a decision, it is advisable to consult a financial expert to assess the various options available and choose the one that best suits your needs.

The ECB forecasts a decrease in interest rates by the end of the year, and this trend could continue in the coming years. Therefore, it may be worthwhile to switch to a revisable fixed rate in 3 to 4 years to take advantage of future interest rate cuts without penalties.

Through collaboration with local mortgage brokers, Nextimmo is able to negotiate the best terms for you. Feel free to [contact us](https://nextimmo.lu/en/contact) for further information.

Evolution of interest rates for new real estate loans in the Luxembourg in 2024

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The reform of rent caps will not see the light of day, but the Ministry of Housing highlights "other important aspects" of the bill. The Government Council approved on Monday, April 15, 2024, the government amendments to the bill amending the rules on residential leases.

These amendments are now in the legislative process, so that the bill can be reviewed by the Council of State and voted on by the Chamber of Deputies "very soon".

**Sharing of real estate agency fees**

In the future, real estate agency commission fees will be shared equally - that is, 50/50 - between the landlord and the tenant, assures the Ministry of Housing.

**Abolition of the notion of luxury housing**

The notion of "luxury housing," which allowed avoiding the application of rent caps (defined by the 5% rule of the capital invested in the housing), will be abolished, notes the government.

**Reduction of the deposit from 3 to a maximum of 2 months**

The maximum legal amount of the security deposit is reduced from three to two months' rent.

_"The bill introduces a procedure for the return of the security deposit, with precise modalities, including a penalty in case of non-compliance with the deadlines provided by the law when the tenant leaves the housing,"_ specifies the Ministry of Housing.

**Limitation of rent increases to 10% every two years**

The rule of annual thirds is replaced by a biennial limit on rents of 10%, notes the ministry. Therefore, during each rent adjustment, the rent cannot be increased by more than 10%.

It should be noted that a furniture surcharge may be requested by the landlord for furnished housing.

**Obligation of a written lease and compliance with the legal rent cap**

All residential lease contracts must be in writing in the future and contain certain mandatory mentions, explains the government.

_"For example, the mention that the rent requested by the landlord for the leased housing complies with the legal annual rent cap (5% of the capital invested in the housing) must be stipulated in any future lease contract,"_ it illustrates.

**Roommate**

The bill provides for specific legal provisions for roommates, "which are still lacking in current legislation," explains the government. A "single cohabitation contract" is established between the tenants and the landlord. In addition, roommates "establish in writing" a cohabitation agreement, in order to formalize the aspects of communal living and the practical modalities of this form of rental.

When a roommate wishes to be released from their obligations before the end of the lease, _"they notify the landlord and their roommates simultaneously with a three-month notice period."_ The notification to the landlord is made "by registered letter" with acknowledgment of receipt. This roommate "is required," before the expiration of their notice period, to search for a replacement roommate.

The other roommates or the landlord "may also propose a replacement candidate." Failing to present a replacement candidate, the outgoing roommate "must be able to demonstrate having actively and sufficiently searched" for a new roommate.

New rules for real estate leasing in Luxembourg: soon to take effect?

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After a period of free-fall in real estate prices in Luxembourg due to the market downturn, a glimmer of hope seems to be emerging on the horizon. The first quarter of 2024 saw an increase in the number of transactions, a sign that buyers are gradually regaining confidence in the market. But what are the prospects for those aspiring to become homeowners?

Firstly, the supply remains relatively abundant, providing a range of choices for potential buyers. Additionally, prices have undergone a significant decrease, ranging between 20 and 30% depending on the municipalities, making real estate accessible again for many buyers. Although mortgage rates are still far from their pre-crisis levels, a downward trend is beginning to emerge, especially for fixed rates. Furthermore, even by contracting at a relatively high rate, it may be possible to renegotiate it in a few years through refinancing.

Real estate remains a major issue in the Grand Duchy, and ensuring the construction of new housing to rapidly increase supply could prove to be a challenge. Nevertheless, the measures implemented by the government to stimulate the market should mitigate the effects of the crisis and revive it in the short term. Therefore, an increase in demand is expected in the coming months, which should help stabilize prices by the end of the year. For tenants considering staying in Luxembourg long term, it is time to develop a strategy to finally achieve homeownership.

Real estate prices are expected to stabilize throughout the year, and the timing is right to search for your future home. When rates drop below 3% (currently the fixed rate is at 3.5%), prices will rise again due to the lack of supply. After hitting rock bottom, real estate prices are expected to rebound, which is a logical consequence of emerging from the crisis, thereby stimulating economic growth.

When real estate is thriving, it can be a positive sign for all other economic activities. Therefore, let us follow this path towards a prosperous future, within our own homes!

Nextimmo is committed to guiding you through all your search processes and helping you realize your real estate projects.


Real estate in Luxembourg: towards price stabilization in 2024?

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In a context where the real estate market experiences significant fluctuations, two innovative players have decided to break conventions by uniting their strengths to facilitate access to housing in Luxembourg. [Nextimmo](https://nextimmo.lu/en), the country's first hybrid agency, and [Albalux](https://www.albaluxcredit.lu/EN/Home/Index), a recognized specialist in real estate brokerage, have now formed a strategic alliance aiming to simplify and optimize the home buying journey for future homeowners.

## A pioneering collaboration for Luxembourg

Established in 2022, Nextimmo has quickly emerged as an innovative solution to the challenges of the Luxembourgish real estate sector. By adopting a unique economic model that promotes free advertising and commission sharing based on success, Nextimmo has convinced nearly 100 real estate agencies to join its platform. With over 1700 regularly updated listings on nextimmo.lu, the company positions itself as a key player in real estate search in the country.

Albalux, on the other hand, is an institution in the world of real estate brokerage in Luxembourg. Its ability to negotiate advantageous financing offers with partner banks, both Luxembourgish and international, makes it a valuable resource for any buyer in search of the best mortgage.

## A strategic partnership with multiple benefits

This partnership between Nextimmo and [Albalux](https://www.albaluxcredit.lu/EN/Home/Index) represents a real boon for future Luxembourgish buyers. Indeed, it combines Nextimmo's real estate expertise with Albalux's financial know-how, thus offering an improved user experience and easier access to Luxembourg's real estate market. The integrated credit calculation tool on Nextimmo's listings now allows users to obtain a reliable estimate of their borrowing capacity, a crucial step in the purchasing process.

## Why this partnership changes the game

The benefits of this collaboration are not limited to increased efficiency for potential buyers. They also mark a significant evolution in how real estate and financial services can work together to meet consumer needs. By pooling their resources and expertise, Nextimmo and Albalux demonstrate that a holistic and integrated approach to the real estate market can not only improve the customer experience but also stimulate the real estate sector as a whole.

## Advantages of the Nextimmo and Albalux cooperation for individuals

The collaboration between Nextimmo and Albalux opens up a multitude of opportunities for individuals looking to navigate the Luxembourgish real estate market. This strategic alliance is not only good news for both companies; it represents a revolution for buyers and real estate investors. Here are the main benefits of this cooperation for individuals:

## Simplification of the real estate purchasing process

Buying a property can often seem like an uphill battle, especially for those unfamiliar with administrative and financial procedures. The cooperation between Nextimmo and Albalux significantly simplifies this process. Users can now find their dream property on nextimmo.lu and simultaneously obtain an accurate estimate of their financing capacity through the integrated calculator, thus facilitating decision-making and accelerating the purchasing process.

Nextimmo and Albalux join forces to streamline access to housing

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With recent government announcements introducing new tax incentives for those considering buying new real estate in 2024, it seems like the perfect time to invest. These aids, available for a limited time, offer a unique opportunity for buyers.

Moreover, financing conditions have never been more attractive, especially for properties with high energy performance. Preferential rates are now accessible, reaching up to 3.4% for properties with an "A" energy passport, thanks to negotiations conducted by Nextimmo partners. This means substantial savings on the total cost of your mortgage.

In this favorable context, Nextimmo is launching "New Property Months," an initiative designed to guide you towards the best opportunities for off-plan property purchases (VEFA). This campaign will allow you to receive directly in your inbox:

- A weekly selection of new real estate programs,
- Detailed explanations about new government aids,
- Practical guides to facilitate your real estate purchase in Luxembourg,
- Interviews with local developers to explore the future of certain neighborhoods and cities in Luxembourg.

This moment is particularly conducive for investors and prospective homeowners eager to enjoy the benefits of new properties, both financially and in terms of quality of life. New real estate not only offers superior energy performance but also modern designs and extended builder warranties.

Nextimmo real estate agency invites you to seize this opportunity. Our team is at your disposal to accompany you in your purchase project, providing expert and personalized advice. Whether you are looking for your future primary residence or a rental investment, Nextimmo is your trusted partner to navigate the Luxembourg real estate market.

Don't wait any longer to realize your real estate project. Contact [Nextimmo](https://nextimmo.lu/en) now to discover how we can help you make the most of this unique opportunity.

Why it's the right time to invest in new real estate?

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In a world where trust reigns supreme, Nextimmo LLC shines through its commitment to thoroughly understand each client. It's not just about filling out forms; it's the promise of a relationship based on clarity and honesty. Here's how they achieve it.

## Delving into the business world
At Nextimmo, every corporate client becomes an open book. From its name to its executives, everything is scrutinized with attention to detail. Imagine a world where every document, every signature reveals its story, ensuring that behind every transaction, there is an undeniable truth.

## Individuals under the microscope
But Nextimmo doesn't stop there. Every person behind a purchase or rental is known down to the smallest details. It's not just about knowing who you are but understanding your journey, ensuring that each exchange is as safe as one between longtime friends.

## A pledge of seriousness
This quest for authenticity is not a mere formality. It's the backbone of Nextimmo, an assurance that every street corner, every house sold or rented, rests on solid and transparent foundations.

## Ultimately, unwavering trust
This journey into diligence is not undertaken alone. Nextimmo invites every client to participate in this adventure of transparency, reinforcing a bond of trust that transcends mere real estate transactions.

Nextimmo: At the heart of transparency

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Imagine a world where buying or selling a house is as simple and transparent as an exchange between friends. At Nextimmo Sàrl, this dream becomes reality thanks to a unique approach to compliance and security in real estate.

## At the heart of transparency: Scrutinizing identification
From your first visit to Nextimmo, a journey begins. Here, every client is welcomed with care, and every piece of identification is examined with the attention of a jeweler. But that's not all: Nextimmo goes further by ensuring that no one hides behind a name on a list they shouldn't be on.

## When signing becomes a sign of trust
Before even discussing numbers or visiting the home of your dreams, Nextimmo lays the foundation for a strong relationship. Signing a sales agreement is not just a formality, but a pact of trust, sealing the deal in the integrity of stone.

## Pursuing excellence: Personalized follow-up
At Nextimmo, each prospect is a story in the making. With a follow-up file as precise as a medical record, the team keeps an eye out, ready to intervene at the slightest sign to ensure that your real estate project goes smoothly.

## Absolute transparency: Flawless information gathering
Whether you're selling or renting, Nextimmo gathers a treasure trove of information on each property. From captivating photos to the smallest legal detail, nothing is left to chance so that every transaction is crystal clear.

## Conclusion: More than an agency, a trusted partner
In the [Nextimmo](https://nextimmo.lu/en) universe, each transaction is a promise: a stress-free experience surrounded by professionals dedicated to your peace of mind. Compliance and security are not empty words, but the very foundation of an agency resolutely focused on the future.

Nextimmo: Behind the scenes of a real estate agency unlike any other

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Investing in real estate in Northern Luxembourg offers a multitude of strategic and financial advantages. In a country with limited territory like Luxembourg, few regions offer as much potential as the North. Since the establishment of Nordstross, this area has attracted the attention of both residents and investors alike. The availability of land and its attractive prices have motivated many developers to embark on the construction of numerous residences and developments. At the same time, the value of existing real estate has increased, leading to a rise in land prices.

With the onset of the real estate crisis, prices in the North have dropped sufficiently to rekindle interest among new buyers in the region's property market. Thanks to new measures by the Luxembourgish government, real estate in the North is becoming accessible again and is suitable for many potential homeowners.

The rise of remote work in many professional fields has made people less dependent on the location of their residence. Additionally, the Northern highway provides access to most locations in less than two hours, making daily or professional commutes easier.

As for house and apartment prices, they can be up to two times lower than in the central part of the country. When it comes to choosing between living in a beautiful natural region as a homeowner or renting accommodation in the country's center, the decision is quickly made.

If you're considering investing in real estate in Luxembourg, consider the Northern region. With its pristine environment, extensive forests and valleys, Lake Esch-sur-Sûre, and historic castles, this region offers tremendous potential. Once the crisis is over, prices are expected to rise significantly, making investments in the North a wise decision for the future.

Find a selection of properties currently for sale in the North under this link: [https://nextimmo.lu/](https://nextimmo.lu/en/buy?type=1%2C2%2C3&subtype=1%2C4%2C5%2C6%2C9%2C12%2C28%2C11%2C13%2C14%2C18%2C19%2C71%2C72%2C83%2C107%2C2%2C3%2C46&region=146)

Why invest in real estate in Northern Luxembourg?

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