For credibility reasons, I can see the ECB skip one or two meetings before starting to (cautiously) lower interest rates and so I don’t expect any major change in Q1 2024. Therefrom the ball really is in their court with respect to how fast and significant they will cut rates, a decision likely impacted by the overall economic picture which isn’t great but also not catastrophic as of now.
The Luxembourg market in particular is a bit unique, we have had large growth in demand not least because of economic growth and an influx of workers. I think it is unlikely that we will get back to peak demand levels anytime soon (if ever) as financial companies are starting to lay off people and make more use of available tech solutions. That is not to say that there won’t still be a supply-demand imbalance.
If people don’t buy at 4.0% now when are they going to buy interest rates dropped already quite a bit the last couple of months. 1% is not expected any time soon if rates go down at all to this level. Or are people not willing to have 1 mio exposure anymore because it doesn’t make sense and Lux is losing competitiveness.
To anyone selling property for a living: THE PRICES ARE TOO FUCKING HIGH!!! Hope that clears up any confusion.
My guess is that prices will continue to drop. There will be some incentives, we don’t know how much nor for whom, so things can change, but I doubt that the government will be willing to put enough money to change the trend
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Interest go down, sales and prices go up
For credibility reasons, I can see the ECB skip one or two meetings before starting to (cautiously) lower interest rates and so I don’t expect any major change in Q1 2024. Therefrom the ball really is in their court with respect to how fast and significant they will cut rates, a decision likely impacted by the overall economic picture which isn’t great but also not catastrophic as of now.
The Luxembourg market in particular is a bit unique, we have had large growth in demand not least because of economic growth and an influx of workers. I think it is unlikely that we will get back to peak demand levels anytime soon (if ever) as financial companies are starting to lay off people and make more use of available tech solutions. That is not to say that there won’t still be a supply-demand imbalance.
If people don’t buy at 4.0% now when are they going to buy interest rates dropped already quite a bit the last couple of months. 1% is not expected any time soon if rates go down at all to this level. Or are people not willing to have 1 mio exposure anymore because it doesn’t make sense and Lux is losing competitiveness.
To anyone selling property for a living: THE PRICES ARE TOO FUCKING HIGH!!! Hope that clears up any confusion.
My guess is that prices will continue to drop. There will be some incentives, we don’t know how much nor for whom, so things can change, but I doubt that the government will be willing to put enough money to change the trend