There are currently several reasons that argue in favor of an investment in real estate:
- Low returns on savings accounts causing erosion of capital (see chart).
- Lack of alternatives with an acceptable level of risk on the stock markets.
- Monetary risks and / or inflation recovery in the Euro zone.
In addition, the Luxembourg real estate market offers specific opportunities:
- Sound economic fundamentals (steady growth in GDP and demographics, a share of income allocated to housing comparable to that of neighboring countries, a limited supply of rental housing, a large and growing number of cross-border workers, a high share of homeowners).
- A stable political, social and institutional framework.
- An attractive tax environment for the real estate investor.
- The opportunity to create leverage through the availability of low-rate mortgages.
- A rental clientele of high quality.
