2.300 : such should be the number of housing units completed in 2023 in Luxembourg. And the prospect is not encouraging, neither for construction companies nor for real estate agencies in the country. In one year, Luxembourg would thus see the number of housing units delivered fall by almost 35%. A shock !
And if the worksites are struggling, it is primarily because the investors are absent from the market. For lack of financial means first. Because if the prices per m² are still maddening, the possibilities of obtaining a loan are getting tighter and tighter.
The reason: the constant rise in interest rates. At 3.51% in January, the cost of credit rose again in February to stand at 3.53% has just informed the Luxembourg Central Bankg (BCL).
A two-point climb that immediately translated into a decrease in the volume of loans granted : – 24 million euros granted from one month to another. In the end, banks and credit organizations will have “released” 193 million euros in February for future real estate purchases.
Thin order books
A year ago, the variable rate granted was around 1.35% and buyers had benefited from more than €220 million in mortgages. Other times, other customs…
Not better besides on the fixed rates practiced from now on in Luxembourg. They reached 3.77% on contracts signed in February. Enough to still allow 268 M€ of investment in “stone”. A significant figure but which the BCL puts into perspective, noting that “on an annual basis, the volume of newly granted loans decreased by €212 million »…
At the end of the chain, construction companies begin to falter. While the next collective is still far away, some don’t know if they will hold out until then or for the recovery.
Thus, a recent study of the Chamber of Trades showed that 44% of companies in the sector said they only had an order book of less than 3 months. GOOD low visibility In effect.