Should you buy new property in Luxembourg in 2025 ?
The complete guide to successfully Buying Off-Plan Property (VEFA)
Comfort, design, energy performance: three advantages of buying a new apartment
Thinking of buying a new property in Luxembourg in 2025? The idea is increasingly attractive—especially with the benefits of buying off-plan (VEFA). Customization, innovation, guarantees… everything’s included. But is now the right time to take the plunge, and how can you make your off-plan purchase a success? This complete guide will help you make the right choice.
1. A buyer-friendly market environment
After a period of uncertainty, the Luxembourg real estate market is stabilizing, and 2025 is shaping up to be a key year for future homeowners.
- New property prices have adjusted and are now more stable, offering greater visibility.
- Interest rates are beginning a gradual decline.
- Banks are encouraging new builds with preferential rates for energy-efficient homes (up to -0.4 percentage points for an A or B energy passport).
- Prices are guaranteed until delivery.
💡 IKO Real Estate offers high-potential projects in innovative and sustainable districts, such as Rout Lëns in Esch-sur-Alzette or Howald City with the Livvy residence.
2. A sustainable, innovative, and customizable home
New builds at Rout Lëns check all the boxes for those seeking a unique, comfortable, and resilient living space in Luxembourg:
- Enhanced thermal and acoustic insulation : triple glazing, large windows that let in natural light
- Low-consumption equipment : underfloor heating, dual-flow ventilation system, smart meters
- Summer/winter comfort : natural cooling through geothermal energy in summer, and wooden ceilings that provide natural warmth in winter
- High energy performance : AAA+ certification, 50% less carbon than a standard building
- Low carbon footprint : use of local wood, photovoltaic panels, and bio-based materials (from renewable natural sources such as hemp, wood wool, or grass fiber)
- Carbon neutrality goal : Rout Lëns is committed to achieving carbon neutrality by 2040, with residences such as D’Haus designed to earn the “Carbon Footprint Neutral” label
- Customization : interior spaces and choice of interior finishes (wood flooring or tiles)
👉 At IKO, our projects are designed to reduce environmental impact while improving quality of life.
💚 Located in the eco-district of Rout Lëns in Esch-sur-Alzette, the new Liicht (AAA energy performance) and D’Haus (AAA+ certified) residences represent the future of housing in Luxembourg. Thanks to geothermal energy, bio-based materials, reinforced insulation, and shared green spaces, they offer a sustainable, comfortable, and environmentally conscious lifestyle.
3. Real, time-limited tax advantages to seize in 2025
The Luxembourg government has maintained several support schemes to make property purchases easier—especially for new homes. However, these benefits are time-limited. To benefit, you must complete your project by June 30, 2025.
For a primary residence:
- Reduced VAT at 3% on €50,000
- “Bëllegen Akt” tax credit : up to €40,000 per person, valid until June 30, 2025
- Mortgage interest deduction : up to €4,000 per person per year
For investors:
- Accelerated depreciation at 6% for 6 years (temporary)
- €20,000 tax credit (temporary)
- Partial capital gains exemption in case of resale with reinvestment
📅 These attractive tax benefits are only valid until June 30, 2025.
Now is the ideal time to buy a new apartment in Luxembourg—whether in Howald, Esch-sur-Alzette, or Luxembourg City.
👉 Don’t delay: starting a VEFA project now means locking in tax advantages while securing a high-performing and sustainable property.
4. A clear and personalized buying process
Buying a new property off-plan is easier than it seems. You’re supported at every step:
- Reservation agreement signed with the developer
- Notarized deed of sale once financing is approved
- Ongoing site monitoring with the option of site visits
- Handover of the home with personalized after-sales service
🏡 IKO offers tailored support with a dedicated advisor, a digital client portal, and after-sales assistance at every stage.
5. Buying new in an innovative and sustainable neighborhood: a winning choice
Buying a new home also means investing in a vision of a connected, sustainable city:
- Schools, shops, and soft mobility (tram, bike lanes, train stations)
- Shared and green public spaces
- Urban planning designed for families, professionals, seniors, and investors
✨ Livvy, in Howald City, fits perfectly into the “15-minute city” concept, just steps from the forest and the Cloche d’Or.
📈 Historically, properties in emerging districts like Belval, Ban de Gasperich, or soon Rout Lëns, have seen rapid value growth.
Conclusion: Why buy a new home in Luxembourg in 2025?
Choosing a new-build property in 2025 means benefiting from a favorable market environment, a customizable, high-performance, and sustainable home, limited-time tax benefits, and comprehensive step-by-step support.
Here are 5 key reasons to take the leap this year:
✅ Stable prices and falling interest rates, with attractive bank offers for energy-efficient properties
✅ AAA or AAA+ certified homes built to last, comfortable year-round, and designed to reduce carbon footprint
✅ Unmissable tax incentives : 3% VAT, tax credits, accelerated depreciation… all to seize before June 30, 2025
✅ A secure legal and financial framework : fixed prices until delivery, VEFA guarantees (completion, 2-year, 10-year)
✅ Smart investment in up-and-coming neighborhoods (Rout Lëns, Howald City…)
📅 In short, buying off-plan in Luxembourg in 2025 means choosing a secure, sustainable, and future-proof investment.
FAQ – New Real Estate in Luxembourg
- What are the main tax benefits?
3% reduced VAT, “Bëllegen Akt” tax credits, accelerated depreciation, investor tax credit - Is a new home more energy-efficient?
Yes : high-performance insulation, lower utility costs, optimized energy consumption - Are there guarantees?
Yes : completion guarantee, 2-year and 10-year warranties, and land share included with IKO - Is buying new a good investment?
Yes : it gains value faster, has better rental appeal, and is well supported by banks
📩 Do you have a purchase project?
Our experts are here to guide you through buying new real estate in Luxembourg.