LUXEMBOURG Law and Practice Contributed by: Claire-Marie Darnand, Victorien Hémery, Johan Léonard and Benjamin Marthoz, Stibbe
and home buyers. While the demand for residen - tial properties remains high, purchasing capacity has been constrained, resulting in a shift toward the rental market. Interestingly, a significant num - ber of nationals own their primary residences, often located outside of Luxembourg City. The rental market is heavily concentrated in apart - ments owned by private investors, particularly in central areas of the country. However, high rental costs and limited availability in certain regions have prompted many newcomers, as well as local residents, to seek housing in neighbouring countries. Significant legislative measures have also been implemented to enhance access to housing and home ownership. Notably, the law of 7 August 2023 on individual housing subsidies (effective as of 1 September 2023) and the law on afford - able housing subsidies (effective as of 1 October 2023) aim to support citizens in achieving home ownership. In terms of office space, the Cloche d’Or dis - trict has ambitious plans for the next ten years, including a total of 215,000 m², of which 120,000 m² have already been delivered; 15,000 m² are currently under construction; and 80,000 m² are in the planning stage. On the residential front, another 200,000 m² are planned, with 140,000 m² delivered; 10,000 m² under construction; and 50,000 m² in the planning phase. The retail sector is the most advanced, with 83,000 m² planned – 77,000 m² delivered, 2,000 m² under construction and 4,000 m² planned. By 2030, the Cloche d’Or district is expected to host around 30,000 users, catering to living, working, studying and leisure activities. In addi - tion, the introduction of the tram line in 2024 completes the mobility strategy, which includes
measures to promote sustainable transportation options. ESG considerations are increasingly influenc - ing real estate decisions. There is consequently a growing emphasis on sustainable building practices and smart technologies that enhance energy efficiency and occupant comfort. 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 ).
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