Things are looking up. Things are looking up. Things are looking up. If we keep telling ourselves that everything's getting better, buyers are going to flock to flats sold off before completion, that's for sure... "Today, buyers are returning to the market, because a number of properties that were inaccessible to them just a few months ago have become so again", , president of the developers section of the Chambre immobilière, which represents Luxembourg estate agents, stated on Tuesday. "Those who have just bought have realised that the time is right. For buyers, conditions have never been so favourable for a decade, and there is plenty of choice", he added, before acknowledging, three lines later in a press release, that "buyer interest has been focused mainly on buildings that have already been built".

"Potential customers have been frightened off by the problems encountered by some builders", says developers' section spokesman . "Even if these problems are isolated, they have been widely publicised in the media. We need to help reassure the public by being more transparent." The media. Of course they do. In its first update of the year, the credit ratings and collection agency  in 2024 compared to 2023, while the sector had already suffered a 43.52% increase in bankruptcies in 2023. These figures deserve our full attention. Among the large companies that have filed for bankruptcy are Maconlux, Carvalho Constructions Générales and Cenaro, Creditreform’s Luxembourg chief, Juan Santiago, noted earlier this month.

"2,000 jobs have been lost in the construction industry", Didier said this week. "Some have gone back to their countries of origin. Others, like temporary workers, have changed industry or sector. And once they have left, they will no longer be available." The haemorrhage has to stop soon, because it is having another terrible effect: skyrocketing rents driven by demand.

Between 50% and 30% pre-sales

To judge the situation correctly, we need impeccable figures that describe the reality of the market. But they don't exist. Neither those of Statec, nor those of Eurocaution or even those of the Chambre immobilière describe the same reality, the interest of the latter being precisely to try to find a solution to this weakness in the analysis. Only 19 of its 34 members answered two questions in the Chambre immobilière's first survey. The figures show that 329 units (flats or houses) were sold in the first half of the year, including 118 for the state or local authorities, and 406 in the second half (20). That's the end of the story. Or that two-thirds of sales were made by three developers in the first half of the year and 45% in the second half (the same three developers).

The other figure that hurts is "1", the number of projects that Prolog has agreed to finance since the launch of this €250m financial instrument on 1 July, through which between 800 and 1,300 housing units were to be built. The first press conference of the year on this subject has a central objective: to show a gesture on the part of the bankers, who now accept property pre-sales of up to 30% instead of 50%, which will open up more discussions with developers; and slightly lower commission charges so as not to penalise smaller projects.

To ensure that the efforts of these men of goodwill are not consigned to the dustbin of history, the press conference on Tuesday at Luxembourg Confederation will set the scene: interest rates are falling but remain well above the rates for mid-2019 to mid-2022, which translates into a monthly payment that is 30% higher for a 25-year loan; with the indexation tranches and tax corrections introduced by the Frieden government, purchasing power has improved by around 10%, and to this we must add the government's housing support measures.

In turn, Luxembourg Bankers Association (ABBL) CEO and Scheuren explained in great detail how the process works and the implementation of a quality charter signed by 16 developers and five members of the Chambre immobilière. The charter describes the completion and repayment guarantees, the ten-year and two-year guarantees, a commitment to transparency and compliance with the completion deadline, a commitment to price transparency and penalties for non-compliance with the charter.

The possibility of using Prolog will end on 30 June 2025, the same date as the end of the government's housing subsidies. A window will close.

The charter can be found . On the site, property buyers can find their way around the wide range of support available.

Read the original French-language version of this news report /