In Luxembourg, cranes are sprouting up like mushrooms, and it is impossible for a future buyer or investor to look over every single real estate project.
We have compiled a list of the next hotspots in Luxembourgish real estate.
Cloche d’Or, a new major economic hub
The highly anticipated “Cloche d’Or” project will accommodate some 3,000 inhabitants as well as many intellectual services companies’ employees (PwC, Deloitte, AlterDomus…). On a gigantic 80 hectares site, the project will house to the new French school campus, a shopping mall, the new national stadium, as well as a new park that will spread out over 20 hectares.
Close by, a vast residential project is currently being developed on the available land between Gasperich and Cessange.
Combining local services and easy mobility (Hollerich station, tram line, motorway access), this new modern area on the south of the city, Cloche d’Or – Gasperich – Cessange, will be synonymous of an outstanding quality of life.
Hollerich and Gare, two redeveloping neighbourhoods
On the medium term, taking advantage of an approved PAG (Plan d’Aménagement Général) mixing office, retail and housing projects, Hollerich and Gare hold a strong potential. Despite suffering a bad reputation, the whole area is undergoing a deep transformation.
The current SOHO development was the first of many in Hollerich. With huge upcoming projects like the “Portes d’Hollerich”, the social security centre, or the PAP “Wurth – Van Landewyck” (more than 20 hectares), these neighbourhoods will be completely remodelled. Let’s not forget the arrival of the tram at the central station, planned for 2020.
With square-metre prices that are often much lower than neighbouring areas, these neighbourhoods have a high potential.
The completion of Kirchberg
The majority of Kirchberg is now completed, in particular the office area. However, a new PAG approved the development of many new residential and mixed zones, especially on the northern side of the plateau.
One of the main specificities of Kirchberg is the large offer in state-subsidized moderate-cost housing and emphyteutic leases that are reserved to owner-occupants. The availability of rental property is therefore particularly low, especially compared to the amount of highly qualified professionals working in Kirchberg and that want to live close to work. This should ensure investors a solid rental yield, compensating the high square-metre prices.
Belval, a new auxiliary economic hub
Luxembourg-city does not have the monopoly of high-potential projects. A certain number of areas outside the capital have a bright future, and in particular Belval (Esch-sur-Alzette). Following the decentralisation policy, Luxembourg has invested in the development of a new service zone in the south of the country. The university, several state services, a shopping mall, as well as many new companies are moving to this new economic hub. This area has recorded a stable real estate growth due to the increasing economic activity. The whole area is far from being completed, so it should be closely monitored.
There are many other projects sprouting around the country. Whenever you identify something, bear in mind several key elements that will impact your property price: a walking-distance supermarket, a bus or tram stop close-by, accessibility to a major road or motorway. In any case, don’t hesitate too long when you have identified a suitable high potential project. Chances are that it won’t stay on the market for very long!
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