in the city
As developers of high-end residential and commercial real estate in Belgium and the Grand Duchy of Luxembourg, at Unibra Real Estate we don’t have a bad word to say about real estate as an ideal investment strategy. Meet Victor Hugo.
Of the housing stock
consists of apartments
Of all immigrants who live in
luxemburg rent their homes
Is the net initial yield
for multi-family properties
A location with international allure
The Grand Duchy of Luxemburg is a global player and several government departments and important economic industries are based here. It’s a crucial pivot in the export and import of fuel, metal and ore with countries such as Belgium, Germany, France and The Netherlands but also with China, the UK and the US.
The Victor Hugo project is exceptionally well located in the Limpertsberg district, which guarantees stable and solid added value over time. This prime location enjoys an excellent reputation and offers its residents an unprecedented quality of life. The upmarket flats feature high-quality finishes, and the studio apartments are even sold fully furnished. All these features, together with its location and interesting rental opportunities, make Victor Hugo an exclusive investment project without equal.
Durable high-end architecture without rival
Unibra Real Estate has assigned the design of this residential project to Moreno, the renowned Luxembourg-based firm of architects that specialises in complex, imaginative creations.
The high-end materials and finishing create an atmosphere of opulence. The cupboards, walls and furniture are made of lacquered MDF or wood such as oak or walnut. The studio floors are covered with large ceramic tiles from Italy which have a marble-like appearance. In the apartments, wide-plank flooring made of top-quality, white-stained oak has been used. In the bathrooms, the walls and floors are covered with marble-effect ceramic tiles.
The extra-large format of the tiles emphasises the prestigious nature of the development while creating a smart, contemporary atmosphere. These tiles give an impression of luxury with their onyx and royal calacatta marble effect.
In short, Victor Hugo is an exceptional and durable project at a unique location with great potential and a guaranteed return
The evolving housing market in the Grand Duchy
Recent figures show that there was a total of 265,000 households occupying 146,700 buildings in the Grand Duchy according to Statec. Whilst the number of new dwellings delivered each year is growing, that growth is still not large enough to accommodate all new households. Houses are gradually being replaced by multifamily properties such as apartments. The current housing stock in the Grand Duchy is 49.7% single-family houses and 50.3% apartments (36% in apartment buildings and 14.3% in semi-residential buildings).
Apartments thus slightly outnumber houses.
We can therefore conclude that living in multifamily properties is becoming more popular than living in single-family houses and that there is an interesting investment opportunity here.
Evolution of housing delivered by type:
single family houses decrease in favour of apartments
Housing prices and rental opportunities
Over the past decade, there has been a steep rise in prices in Europe. Luxembourg has followed that trend, but at a faster pace over the last year than that observed in other European countries. The House Price Index (2015 = 100) for Luxembourg is 148.88 against 125.81 on average for the 27 EU countries. This puts Luxembourg in 6th position in Europe. Figures from the most recent years published by the Observatoire de l’Habitat show average asking prices varying from €3,958 per sq.m. in rural areas in the North up to €14,500 per sq.m. for exclusive residential real estate in the capital. These are average prices that apply to existing and new buildings combined, so prices for newly built apartments will be even higher.
Investing in rental property in the Grand Duchy is therefore more interesting than ever. The residential market in Luxembourg attracts both private and institutional investors. At this point in time, private investors and family offices dominate the market, but with the growing rental market and persistently low interest rates, institutional investors are becoming more and more active in this segment.
Why renting your
property is now
TENTAL MARKET GROWTH
The population growth is due in large part to immigration. Immigrants, more than Luxembourgish nationals, are oriented towards the rental market. Roughly 50% of immigrants rent their homes. This trend is expected to continue, in particular in major cities.
STEADY NET INFLOW
In Luxemburg the immigration process is far faster than in other European countries, which increases the need for accommodation and immigration is forecast to increase more than 2% each year in the next few years. The number of residential units that are under development cannot meet this demand. The lack of offer puts upward pressure on prices, which may ultimately benefit the rental market.
Urbanisation is gaining ground all over the country, but not at the same pace everywhere. With the industrialisation of the country, the population of the cantons of Luxemburg City and Esch increased more strongly and earlier than that of the other cantons. These cantons now have the highest population densities and the highest level of urbanization, which creates a need for rental properties.
changing housing preferences
People adapt their housing to their personal situation. Single person households increase, young couples settle later, … All these phases in life come with different housing demands. Add to this the high level of immigration and the accommodation demand is booming.
Announced average rent per sq.m. per month
Average size of apartment
Recent figures indicate that the average rental price per square
meter/month is the highest in Luxembourg.
Real estate in
on january 1st 2020
per sq.m./month (mid 2020)
Net initial yield