Was expecting to see this news any day now. The greedy corporate mentality of privatising profits to themselves, and sharing losses with the government and taxpayers.
Am I missing something or is this relatively good news? About time the bubble burst.
Simply fk them
With the current interest rates, it is better to place on deposit than invest in real estate. Investors won’t spend 1mio on a small apartment that can be rented out for 2,000 a month when you can earn 2,500 risk free on a deposit account. The same goes for home buyers who need a mortgage – the repayments are too high compared to the cost of renting. Interest rates are not going down any time soon, so real estate prices have to fall.
“We only build on demand … “
Imagine the cruel world where companies only survive when there is demand. What a Crazy World that must be.
It borders on insult when companies like Georgetti request financial support in whatever form. The way I see it, the government can now show whether they really care about affordable housing as this represents the cheapest possible way to achieve that. Just do nothing. Any sum going to developers will be evidence to the contrary.
these guys are great. “There will be human tragedies” coming from characters that made fortune based on privileged positions and creating bubble. now bubble is no longer in their favor so we should all give them helping hand.
Quote from the article:
*”We only build on demand … without investors, we cannot create anything,” explains Nathan, technical director of the Poeckes company and vice-president of the Chamber of Trades.*
Well, what about the actual demand from the people moving into the country that supposedly were driving the prices up? Oh wait..
Sorry, don’t have much sympathy for the construction sector here. For years they have got away with vastly inflating prices through constraining supply. In reality, it is little more than a cartel. We have seen at the same time people being forced to take on stupidly high mortgages while interest rates were at historically stupidly low levels.
I have some sympathy for the smaller scale developers, perhaps families who are selling off a property they own. But not the large companies who have been fleecing this country for years.
We need a massive market correction here.
Oh look, the music is about to stop… FINALLY! I‘m so pissed off, that I went back to school a few years to earn more money only to find out, that with my now decent paycheck (approx. 4300net/month) I can‘t buy more than a 35-45m2 shed somewhere near the end of the world. The 2 developers have more money than anybody can ever spend, but their workers are the ones who will be fkd.
Are these guys for real? Fuck off….
I do think there’s a crisis looming that will shake the country. But IMO: let it run its course, including a few more bankruptcies. As soon as prices fall, demand will start to rise again (and prices will stabilize), but the demand will then (hopefully) come in a larger part from future home owners instead of investors. And that’d be a good thing. Speculators, investors, developers are the ones responsible for the current situation.
They’re looking for investors, eh? How about the government become the investors and tell these developers to build houses in the 400k range. Build more houses than they currently build and they can make up the shortfall in any profits lost when they were selling the same houses for 1.5 million. Heck, they’d probably even have to hire more workers to keep up with the demand. Imagine how heroic they’d look by providing affordable house AND creating jobs at the same time! /s
“my profits, our losses”
Amusing. What are they proposing as solutions? The government makes it mandatory for every newcomer to Luxembourg to buy an apartment for a million euros? Subsidizes interest rates up to 50k a year? What exactly do they think the government can do except straightout just give them money they imagined and even if they do, that fixes what exactly? They will come back next year again with the same problem.
Plus aren’t we finally at the stage where people can begin to consider that Luxembourg is not special and that this was a bubble like so many others and that is now gonna pop and that’s gonna be it.
So many people got so rich on it and still can, surely we can all just move on and forget the idea that an apartment in Luxembourg is worth seven figures and be done.
> some companies “no longer have enough work”
> Roland Kuhn, another real-estate developer, has already alerted the Minister for Housing by asking for a twelve-month-long aid for the construction sector
Fuck this. It is still impossible to find an construction company which is willing to start an project without having to wait for over a year. I only believe that there is an actual lack of demand when I see a single construction company idling around. This is just another grab for subsidizes and even if it isn’t I wonder if he ever heard the story about the child who always screamed “Woolf”.
While RE developers don’t deserve much sympathy, they are really only a tiny cog in the massive machine that is fucking it up for everyone else. RE agents, cheap money for over a decade and institutional investors have a much more significant influence on demand and prices.
For anyone hoping for a downturn: Hope for a slowly deflating bubble. If it burst, then you’ll likely get hit as well. Banks will tighten their requirements for loans, construction will slow down significantly, etc.
Easy fix for everyone (be it developers and people looking for buying): seriously tax landowners that don’t sell their empty lands, reduce the paperwork involved to start building, reduce subsidies to farmers so they also sell their millions of acres of land where only about 5 cows live, basically work on actually increasing the offer.
Trying to increase demand, or letting construction companies collapse is a recipe for disaster. And I understand the schadenfreude when reading such articles. But the construction companies are doing their business, and expecting them to act morally is naive. It’s the gov that has to put the right rules in place that motivate people and businesses to do the right thing.
Developers that have 400% margin on sale of new property sounding the alarm lol
So, for the last few years, government had to do something to stop the prices from going up, but now suddenly the government has to do something to stop them from going down?
This is not even funny anymore, how can people still fall for this? What do they want the government to do. Offer citizenships to any Chinese billionaire who buys a dozen of these? Pretty sure that’s already mostly been done and even the billionaires who desperately want these are in short supply.
Says the guys who bought all the land and now can’t sell it.
🤣🤪🤣🤪🤣🤪🤣…!!!
F*ck them all. Thay cannot buy a ferrari per month now, poor guys, is not that they have been screwing the rest of the population and now they are crying
Cry me a river while I play you a song on the world’s tiniest violin.
So basically, the evaluations will fall but owners will not really want to sell (most people dont have any mortgage or at least are not exposed to variable rates), there won’t be buyers because with high interest rates nobody can afford these prices anymore (unless you’re paying with cash, but then you’re probably buying another asset). Therefore, there won’t be any transactions on the secondary market and no new construction either because they are too expensive. Construction companies will fail. Supply will drop massively, rents will go up even more. Luxembourg will become less attractive but so will other capitals and urban centres. If you’re looking to sell soon, then it will be bad for you. If you’re looking to buy, it will also be bad for you. Is it really a bubble then ? Then when ECB brings down the interest in 24 months the prices will pick up from where they were, or maybe owning your flat will be become a thing of the past ? Who owns in Switzerland, like 40%?
Realistically, If the demand isn’t there, why not cut prices? What are the cons for this? I’m sure there’re people willing to buy at a lower price. I’m not suggesting 40 50%. More around 15 to 20%. Affordability has definitely reduced due to rising interest rates.
I don’t buy the rising commodity prices. Typically for a 1 million apartment, I don’t believe construction costs are any more than 25 30%. Some increase in commodity prices can’t put them at such a huge risks.
Poor rich people that can’t get any richer…
Funny thing as it looks like when someone is playing monopoly, buys a lot of land and built houses only to have no players landing on them.
” There will be human tragedies”…….. what a good monday…
“We only build on demand … without investors, we cannot create anything,”
How odd. Russia slapped with sanctions and the investor pool dries up. Coincidence, I’m sure.
29 comments
Was expecting to see this news any day now. The greedy corporate mentality of privatising profits to themselves, and sharing losses with the government and taxpayers.
Am I missing something or is this relatively good news? About time the bubble burst.
Simply fk them
With the current interest rates, it is better to place on deposit than invest in real estate. Investors won’t spend 1mio on a small apartment that can be rented out for 2,000 a month when you can earn 2,500 risk free on a deposit account. The same goes for home buyers who need a mortgage – the repayments are too high compared to the cost of renting. Interest rates are not going down any time soon, so real estate prices have to fall.
“We only build on demand … “
Imagine the cruel world where companies only survive when there is demand. What a Crazy World that must be.
It borders on insult when companies like Georgetti request financial support in whatever form. The way I see it, the government can now show whether they really care about affordable housing as this represents the cheapest possible way to achieve that. Just do nothing. Any sum going to developers will be evidence to the contrary.
these guys are great. “There will be human tragedies” coming from characters that made fortune based on privileged positions and creating bubble. now bubble is no longer in their favor so we should all give them helping hand.
Quote from the article:
*”We only build on demand … without investors, we cannot create anything,” explains Nathan, technical director of the Poeckes company and vice-president of the Chamber of Trades.*
Well, what about the actual demand from the people moving into the country that supposedly were driving the prices up? Oh wait..
Sorry, don’t have much sympathy for the construction sector here. For years they have got away with vastly inflating prices through constraining supply. In reality, it is little more than a cartel. We have seen at the same time people being forced to take on stupidly high mortgages while interest rates were at historically stupidly low levels.
I have some sympathy for the smaller scale developers, perhaps families who are selling off a property they own. But not the large companies who have been fleecing this country for years.
We need a massive market correction here.
Oh look, the music is about to stop… FINALLY! I‘m so pissed off, that I went back to school a few years to earn more money only to find out, that with my now decent paycheck (approx. 4300net/month) I can‘t buy more than a 35-45m2 shed somewhere near the end of the world. The 2 developers have more money than anybody can ever spend, but their workers are the ones who will be fkd.
Are these guys for real? Fuck off….
I do think there’s a crisis looming that will shake the country. But IMO: let it run its course, including a few more bankruptcies. As soon as prices fall, demand will start to rise again (and prices will stabilize), but the demand will then (hopefully) come in a larger part from future home owners instead of investors. And that’d be a good thing. Speculators, investors, developers are the ones responsible for the current situation.
They’re looking for investors, eh? How about the government become the investors and tell these developers to build houses in the 400k range. Build more houses than they currently build and they can make up the shortfall in any profits lost when they were selling the same houses for 1.5 million. Heck, they’d probably even have to hire more workers to keep up with the demand. Imagine how heroic they’d look by providing affordable house AND creating jobs at the same time! /s
“my profits, our losses”
Amusing. What are they proposing as solutions? The government makes it mandatory for every newcomer to Luxembourg to buy an apartment for a million euros? Subsidizes interest rates up to 50k a year? What exactly do they think the government can do except straightout just give them money they imagined and even if they do, that fixes what exactly? They will come back next year again with the same problem.
Plus aren’t we finally at the stage where people can begin to consider that Luxembourg is not special and that this was a bubble like so many others and that is now gonna pop and that’s gonna be it.
So many people got so rich on it and still can, surely we can all just move on and forget the idea that an apartment in Luxembourg is worth seven figures and be done.
> some companies “no longer have enough work”
> Roland Kuhn, another real-estate developer, has already alerted the Minister for Housing by asking for a twelve-month-long aid for the construction sector
Fuck this. It is still impossible to find an construction company which is willing to start an project without having to wait for over a year. I only believe that there is an actual lack of demand when I see a single construction company idling around. This is just another grab for subsidizes and even if it isn’t I wonder if he ever heard the story about the child who always screamed “Woolf”.
While RE developers don’t deserve much sympathy, they are really only a tiny cog in the massive machine that is fucking it up for everyone else. RE agents, cheap money for over a decade and institutional investors have a much more significant influence on demand and prices.
For anyone hoping for a downturn: Hope for a slowly deflating bubble. If it burst, then you’ll likely get hit as well. Banks will tighten their requirements for loans, construction will slow down significantly, etc.
Easy fix for everyone (be it developers and people looking for buying): seriously tax landowners that don’t sell their empty lands, reduce the paperwork involved to start building, reduce subsidies to farmers so they also sell their millions of acres of land where only about 5 cows live, basically work on actually increasing the offer.
Trying to increase demand, or letting construction companies collapse is a recipe for disaster. And I understand the schadenfreude when reading such articles. But the construction companies are doing their business, and expecting them to act morally is naive. It’s the gov that has to put the right rules in place that motivate people and businesses to do the right thing.
Developers that have 400% margin on sale of new property sounding the alarm lol
So, for the last few years, government had to do something to stop the prices from going up, but now suddenly the government has to do something to stop them from going down?
This is not even funny anymore, how can people still fall for this? What do they want the government to do. Offer citizenships to any Chinese billionaire who buys a dozen of these? Pretty sure that’s already mostly been done and even the billionaires who desperately want these are in short supply.
Says the guys who bought all the land and now can’t sell it.
🤣🤪🤣🤪🤣🤪🤣…!!!
F*ck them all. Thay cannot buy a ferrari per month now, poor guys, is not that they have been screwing the rest of the population and now they are crying
Cry me a river while I play you a song on the world’s tiniest violin.
So basically, the evaluations will fall but owners will not really want to sell (most people dont have any mortgage or at least are not exposed to variable rates), there won’t be buyers because with high interest rates nobody can afford these prices anymore (unless you’re paying with cash, but then you’re probably buying another asset). Therefore, there won’t be any transactions on the secondary market and no new construction either because they are too expensive. Construction companies will fail. Supply will drop massively, rents will go up even more. Luxembourg will become less attractive but so will other capitals and urban centres. If you’re looking to sell soon, then it will be bad for you. If you’re looking to buy, it will also be bad for you. Is it really a bubble then ? Then when ECB brings down the interest in 24 months the prices will pick up from where they were, or maybe owning your flat will be become a thing of the past ? Who owns in Switzerland, like 40%?
Realistically, If the demand isn’t there, why not cut prices? What are the cons for this? I’m sure there’re people willing to buy at a lower price. I’m not suggesting 40 50%. More around 15 to 20%. Affordability has definitely reduced due to rising interest rates.
I don’t buy the rising commodity prices. Typically for a 1 million apartment, I don’t believe construction costs are any more than 25 30%. Some increase in commodity prices can’t put them at such a huge risks.
Poor rich people that can’t get any richer…
Funny thing as it looks like when someone is playing monopoly, buys a lot of land and built houses only to have no players landing on them.
” There will be human tragedies”…….. what a good monday…
“We only build on demand … without investors, we cannot create anything,”
How odd. Russia slapped with sanctions and the investor pool dries up. Coincidence, I’m sure.
More alarms:
«Il n’y a plus d’embauches» dans le secteur du bâtiment
https://www.lessentiel.lu/fr/story/il-ny-a-plus-dembauches-dans-le-secteur-du-batiment-565526167777