real estate in luxembourg: what you should know, …€¦ · real estate in luxembourg: what you...
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Real Estate in Luxembourg: What you should know, what's new? 25 February 2016
Real Estate in Luxembourg: What you should know, what's new?
25 February 2016
Guest speakers :
M. Jean Paul Scheuren, President of the CIGDL
(Chambre Immobilière) M. Mario Di Stefano, Managing Partner
(DSM Di Stefano Moyse) Mrs. Nicole Avez-Nana, Director
(AB-Lux Relocation Services) Mrs. Camilla Cuppini, Communication Director
(Just Arrived) Moderator
Organized by: AMCHAM’s Real Estate Committee
Real Estate in Luxembourg: What you should know, what's new?
25 February 2016
M. Jean Paul Scheuren, President of the CIGDL
(Chambre Immobilière)
Organized by: AMCHAM’s Real Estate Committee
1. KEY FIGURES
o Total stock of dwellings: +/- 210 000
o What is the demand: 8 -10 K new residents /year
o Supply: 2,5 to 3,5 K new dwellings a year
o 70% of occupants are owners
o 61 % of renters would be able to buy
Residential Prices (VEFA-new)
Residential Prices (second hand)
Residential Prices (1974 – 2011)
Residential Prices (1974 – 2011)
WHERE TO FIND MARKET INFO
• SOME INTERESTING LINKS
– Public: www. Observatoire.ceps. lu - www.statistiques.public.lu
– Privat: www.cigdl.lu - www.athome.lu - www.immotop.lu
www.habiter.lu …..
• BUT ATTENTION TO PSEUDO-TRANSPARENCY
GET PROFESSIONAL HELP
CIGDL’s Code of ethics Guaranty for professional service Code of ethics=
professional and ethical rules
+ control and sanctions
Quality Charta =
11 rules to guaranty service
Auto control of the profession
WHAT’S NEW
• Subsidies for rent (1/01/2016)
• VAT 17% (1/1/2015)
• Minimal criteria for permit: AB (1/01/2015)
• CIGDL – brokers’ « Bourse professionnelle »
WHAT’S NEXT
Tax reform 2017 – some uncertainties
Real Estate in Luxembourg: What you should know, what's new?
25 February 2016
Guest speakers :
Mrs. Nicole Avez-Nana, Director
(AB-Lux Relocation Services)
Organized by: AMCHAM’s Real Estate Committee
What is Relocation?
• Relocation is often related to new business opportunities, expansion and growth abroad!
Request of business agreement from 1990 -2014
AB-Lux Relocation Services: the secret of happy expatriates!
Relocation Services for Whom ?
• Employees moving from abroad
• Anyone who plans to relocate to Luxembourg
AB-Lux Relocation Services: the secret of happy expatriates!
Relocation Services Where ?
• In Luxembourg and surroundings
AB-Lux Relocation Services: the secret of happy expatriates!
How to manage a relocation? • Delegate to your staff members if you don’t
want them to focus on their jobs • By yourself if you don’t mind dealing with
this complicated and stressful matter • OR: Outsource to relocation experts
AB-Lux Relocation Services: the secret of happy expatriates!
Average cost of living - Accomodation
Monthly rent for 85 sqm furnished accommodation in
Luxembourg city area €1,850
Monthly rent for 85 sqm furnished accommodation in
10-15Km from the city €1,475
Utilities 1 month (heating, electricity, gas ...) for 2
people in 85 sqm flat €210
Monthly rent for a 45 sqm furnished studio in
Luxembourg city €1,254
Monthly rent for a 45 sqm furnished studio in 10 -15
Km from the city €974
Utilities 1 month (heating, electricity, gas ...) for 1
person in 45 sqm studio €121
Monthly rent for 200 sqm house in Luxembourg city
area €3600
Hourly rate for cleaning help €17
AB-Lux Relocation Services: the secret of happy expatriates!
Compared to other cities…
Cost of living is the key for expat compensation packages
Cost of living in Luxembourg-city is
• 8% more expensive than in Munich,
• 16% more expensive than in Brussels,
• 6% cheaper than in Miami, Florida,
• 11% cheaper than in Paris,
• 33% cheaper than in London,
• 36% cheaper than in Zurich
AB-Lux Relocation Services: the secret of happy expatriates!
Salary evolution in Luxembourg 1962-2010
•Average Monthly Salary in Luxembourg is about 5,915 EUR
AB-Lux Relocation Services: the secret of happy expatriates!
Tenancy tips:
• Good properties rent fast!
• When you see a property that matches your needs do not hesitate; make an offer for it immediately !
• Try to offer the longest rental period as possible as landlords hate having their properties empty.
• Check the lease twice before signing it.
AB-Lux Relocation Services: the secret of happy expatriates!
Tenancy tips:
• Your employment contract will probably need to show that your income is at least two and a half times the rent.
• Make sure you have your documents ready for the visit (copy of work contract , ID card and small biography of yourself).
• Don’t negotiate the price in front of the owner.
• Pre - tenancy is a good option if you have the time to wait.
AB-Lux Relocation Services: the secret of happy expatriates!
Pre-tenancy
37 high standing appartement will be available in few months
AB-Lux Relocation Services: the secret of happy expatriates!
Thank you!
• For more information, you can contact me at
Mobile: 621 718 748
Office: 26 18 76 46
Skype: nicole.avnana
AB-Lux Relocation Services: the secret of happy expatriates!
Real Estate in Luxembourg: What you should know, what's new?
25 February 2016
Q&A
Organized by: AMCHAM’s Real Estate Committee
Real Estate in Luxembourg: What you should know, what's new?
25 February 2016
Thank you for your attention
Organized by: AMCHAM’s Real Estate Committee
Real Estate in Luxembourg: What you should know, what's new?
25 February 2016
Guest speakers :
M. Mario Di Stefano, Managing Partner
(DSM Di Stefano Moyse)
Organized by: AMCHAM’s Real Estate Committee
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
• Principle provided for by the Law of 30 July 2013
• Four areas
•Plan directeur sectoriel « Transports »
•Plan directeur sectoriel « Logement »
•Plan directeur sectoriel « Paysages »
•Plan directeur sectoriel « Zones d’activités économiques »
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
• Aim: To govern sustainable spatial development on a national level
• Consequence: Direct and great impact on territorial organisation and land use
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
• 24 June 2014: Dispatching to all the municipalities with the help of the Luxembourg army
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
• But: Outcry among municipalities and practically all real estate professionals
• Numerous legal and practical issues
• Plans sectoriels= Unrealistic, complex, based on outdated figures, lack of precision, violation of the Constitution, violation of the communal autonomy, etc.
• i.e. not viable
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
• Ordinance of 17 September 2014 by the president of the administrative tribunal:
• suspension of building permit based on serious doubts on the applicability of the transitional measures as provided for by the plans sectoriels
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS » 18 November 2014: Opinion by the Council of State • Makes reference to a decision by the
Constitutional Court of 4 October 2013 that considers that "an amendment of the attributes of property that is substantial to the point of depriving it from is essential aspects must be assimilated to an expropriation in the sense of article 16 of the Constitution”
• Expropriation is subject to a formal law
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS » Result: 28 November 2014: The government decides to • stop the ongoing procedure; • to withdraw the draft grand ducal regulations
destined to implement the plans sectoriels • to annul the decision of 16 June 2014 on the
transmission of the draft regulations to the municipalities
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS » February 2016: The Government announces that • the new plans sectoriels will go into procedure
in the autumn of 2016 • More input by the communes – currently
under way 5 regional conferences • Consultation procedure end of 2016 • The new law on land use will be ready in the
spring of 2017
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
Focus announced
• Reduce the use of surfaces from 2 hectares to 1 hectare per day
• Mobilize unused land (plots)
• Densify the urban fabric
• Build higher
• But: keep quality of the habitat
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
« Important changes » for the plan sectoriel logement
• Limitation to the designation of sites for major projects
• More flexible approach with respect to the allocation of the potential for growth of housing and with respect to density
ZONING AND PLANNING On a National Level
THE RETURN OF THE « PLANS SECTORIELS »
Risks and Chances
• Renaissance of certain easements and limitations on construction in certain areas
• More square meters on certain plots?
• Now is the time? Or not?
ZONING AND PLANNING On a National Level
THE « LOI OMNIBUS »
Draft Bill 6704: Still in the pipeline
Latest addition: 6 January 2016
• Aim: to correct some flaws created by the law of 22 october 2008 (« pacte logement ») with respect to the contractual freedom / flexibility regarding agreements on surface rights (droits de superficie)
ZONING AND PLANNING On a National Level
THE « LOI OMNIBUS »
Draft Bill 6704: Still in the pipeline
Spin-off: Law of 14 June 2015
• Amendment of article 108 of the law of 19 July 2004 on communal planning and urban development.
• New PAG’s must be submitted to municipal council until 8 August 2018
TAX
On 24 February 2016, Mr. Marc Hansen, Secretary of State for Housing says
“The fiscal reform which is underway will have a positive impact on the housing sector”
• No further details given
• New tax incentives?
• Or (new) penalties for land use not in line with government (or local) policy?
• What about the property tax?
TAX
Taxation of unused real property • The law allows the municipalities to vote a tax
on unoccupied or unused buildings and on vacant building lots
• To day, 5 communes have done so: Beckerich, Diekirch, Esch-sur-Alzette, Esch-sur-Sûre et Redange-sur-Attert
• If sale of such property obligation for the seller to inform the purchaser, or else he remains liable
• More to follow?
ZONING AND PLANNING On a Communal Level
• “Dogmatic” restrictions on development?
• 2014: City of Differdange
• Ban of the demolition of single-family homes practically on the entire territory of the City
• Exception: certain main public roads, and for student housings
• Amendment of the city’s PAG (Plan d’Aménagement Général)
• In line with government policy?
Thank you for your attention!
Any Questions?
CONTACT