LUXEMBOURG Law and Practice Contributed by: Claire-Marie Darnand, Victorien Hémery, Johan Léonard, Benjamin Marthoz and Tom Storck, Stibbe
1.3 Proposals for Reform A draft bill on heritage foundation was launched in 2013 to complete asset planning. This project is still pending, and has not been amended since 2014. More recently, a bill on land management and urban development has been under discussion, aiming to implement practical and operational support. 2. Sale and Purchase 2.1 Categories of Property Rights Property rights (for full ownership) are as follows: • the right to use the asset (usus); • the right to use the fruits – rents, etc (fructus); and • the right to dispose of the asset (abusus). Property rights may be acquired partially or totally through: • full ownership; • a lease (rental or commercial, livestock); • usufruct; • the rights of emphyteosis ( emphyteose ) or surface ( superficie ); • co-ownership ( copropriété ); and • joint ownership ( indivision ). 2.2 Laws Applicable to Transfer of Title The transfer of real estate assets located in Luxembourg is governed by the laws of Luxem - bourg, as lex rei sitae. The provisions of the Civil Code mainly govern the transfer of title. Other specific laws or reg - ulations may apply, depending on the type of
owned by private investors, with a greater con - centration in the country’s centre. Due to high rents and reduced offerings in some areas, new - comers and even nationals often decide to live abroad, in one of the neighbouring countries. The construction sector, which has been in dis - tress for several months, suffered a major blow in 2023. This impact is clearly reflected by sev - eral major bankruptcies of companies in the construction industry. After an already challenging period in 2022, Q1 2023 witnessed a further decline in occupancy, which fell by 17% to almost 176,000 m², with the biggest transactions being KPMG leasing 31,000 m² in BPI’s Kronos project in Kirchberg, the European Parliament taking occupancy of its new 30,000 m² Konrad Adenauer building, and Intertrust taking occupancy of 6,479 m² in the White House building at the Cloche d’Or, while also leasing 1,800 m² in the Emerald building next door. The global economic downturn and the rising cost of building materials ultimately led to the suspension of numerous construction projects in 2023. The real estate industry is facing a com - plex and challenging situation; however, a recov - ery is still anticipated in 2024 with the expected fall in interest rates. Notably, the law of 7 August 2023 on individual housing subsidies, which took effect on 1 Sep - tember 2023, and the law of 7 August 2023 on affordable housing subsidies, which took effect on 1 October 2023, introduced public measures largely to promote access to housing and home ownership for citizens.
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