Despite a tense real estate environment in 2022 and 2023, the Cloche d'Or district is holding its own. Laurence Brix and Michel Knepper of Promobe resp. Grossfeld Immobilière spoke optimistically to Alix Bellac.

We have selected a few extracts from his article published in Bauen & Wunner by wortimmo.lu on April 24. 

Although Laurence Brix and Michel Knepper of Promobe resp. Grossfeld Immobilière acknowledge that "the Luxembourg real estate market experienced its worst years in 2022 and 2023", the duo are nonetheless optimistic: "the measures put in place by Mr. Frieden's new government should allow us to glimpse a brightening. Despite a generally gloomy context, reinforced by conditions of access to credit that resemble an obstacle course, it's worth noting that neighborhoods classified as "prime districts" have suffered less.

This means neighborhoods with local shops, easy access and soft mobility, as well as access to healthcare, education, sports facilities and a pleasant environment. All of this sums up and brings together what everyone can dream of having at their fingertips in everyday life.

These neighborhoods are highly sought-after by investors, buyers and retailers alike. This generates strong neighborhood appeal and guarantees a risk-free purchase or a profitable investment. These "prime" neighborhoods will weather cycles of economic imbalance more solidly.

At the Weierbach project in the Cloche d'Or district, more than 75% of the apartments in lot D5-10 have already been sold, despite the tense economic climate. The project is currently under construction, with deliveries scheduled from the end of 2024."

Facts and figures

Still according to Promobe / Grossfeld Immobilière, "The housing observatory has noted that for the year 2022, the number of VEFA apartment transactions will amount to 146 in all 24 districts of the City of Luxembourg.

As a reminder, in 2021, 204 transactions were recorded, in 2020, 395 and 488 in 2019. The highest number of VEFA transactions ever recorded since statistics were first compiled in the Grand Duchy of Luxembourg dates back to 2016, with 641 transactions.

In 2022, Grossfeld Immobilière achieved 37 sales exclusively on its Cloche d'Or project in the Gasperich district. By August 31, 2023, more than 49 sales had been recorded in the Cloche d'Or district, representing a 32% increase over 2022.

The Brix-Knepper tandem adds: "The development of the Cloche d'Or district is continuing, with housing units being delivered to the market and new construction projects underway.

In a tight market, it's important to have reassuring arguments for investors, buyers and tenants. At Grossfeld Immobilière / Promobe, we obviously want to see financing conditions for real estate projects simplified and made accessible to as many people as possible, so that everyone can have access to a home.

We are also hoping for government announcements on building permits. When market conditions are once again optimal, there's no doubt that a good number of households will embark on a real estate project. However, in the wake of the crisis, many developers have stopped producing housing over the past two years. There will once again be a major imbalance between supply and demand. It's imperative that we continue to build at a sustained pace!

Text: Alix Bellac