Vaut-il la peine d'acheter un bien ancien pour le rénover ou d'investir dans un bien neuf au Luxembourg ?

Whether to buy an older property that needs renovation or to invest in a brand-new home remains one of the most important decisions facing property buyers in Luxembourg. With Luxembourg’s property market showing signs of stabilization in 2025 and numerous subsidies available, each option presents distinct advantages and challenges. This article explores both paths, with particular attention to the latest financial incentives and regulations.

The Financial Perspective: Cost Differences

The most immediate difference between old and new properties is the purchase price. In Luxembourg, older properties are historically 15-20% cheaper than equivalent new properties.This price gap can be substantial, especially in a market known for its high property values.

According to research published by STATEC, apartments under construction are on average between 25% and 30% more expensive than existing apartments of comparable size. This initial saving is often a decisive factor for many buyers, especially first-time homeowners with budget constraints. When considering your options, understanding how to properly évaluer la propriétévalues becomes crucial for making informed decisions about both new and existing properties.

Purchase timeline considerations:

Old properties: Can be acquired quickly, with sales typically completed within 1-3 months after signing the compromise

New properties: Often involve buying “off plan” (VEFA) with significant waiting periods until completion

Location and Charm: The Old Property Advantage

One of the most compelling reasons to consider older properties is their location. Established neighborhoods in city centers or near amenities often feature predominantly older buildings. This is particularly relevant in areas like Hesperange, where understanding rental costs in Hesperangecan help investors evaluate the potential returns from older properties in prime locations.

Location benefits of older properties:

• Greater availability in prime urban locations
• Better proximity to infrastructure (schools, shops, public transport)
• Established neighborhoods with mature amenities

Beyond practical considerations, older properties often possess architectural features that new constructions rarely include: high ceilings with decorative moldings, wooden floors, fireplaces, and other period details that add character and charm. For buyers who value these aesthetic elements, renovating an older property can preserve these features while upgrading the home to modern standards. When preparing such properties for sale, secrets de présentation du home staging can help highlight these unique characteristics.

The Security of New: Guarantees and Standards

New properties in Luxembourg come with significant protections for buyers, particularly the ten-year guarantee (or decennial liability). This guarantee covers the property for a decade from construction completion, protecting against structural defects and major issues.

Since January 1, 2017, all new buildings in Luxembourg must meet passive house construction standards and achieve AAA energy efficiency classes. This triple A rating corresponds to optimum energy efficiency, thermal insulation, and environmental impact, with energy consumption being virtually zero (NZEB = Nearly Zero Energy Building).

New constructions also incorporate the latest energy efficiency standards, modern wiring, plumbing, and heating systems, potentially leading to lower utility costs and maintenance expenses in the initial years of ownership.

Renovation Subsidies: Making Old New Again

Luxembourg offers extensive financial support for renovating older properties, making this option increasingly attractive. These subsidies aim to improve both habitability and energy efficiency, and understanding these subventions financières au logement can significantly impact your renovation budget.

The Klimabonus Scheme

For buildings older than 10 years, the Klimabonus program provides substantial financial aid for energy efficiency renovations. The scheme can cover up to 62.5% of an energy renovation project. This subsidy applies to various renovation projects:

• Insulation of roofing, external walls, and floor slabs
• Window replacements
• Installation of controlled ventilation systems
• Installation of technical systems that utilize renewable energy sources

Housing Improvement Subsidy

The improvement subsidy for older homes can cover up to 40% of renovation costs for properties older than 10 years. This aid is means-tested, with the amount varying according to income and family situation.

Eligible work includes:

• Roof repairs or replacement
• Drying out damp walls
• Bathroom and toilet installations
• Heating system installations or renovations
• Window replacements and façade renovations

VAT Reduction for Renovations

Luxembourg applies a super-reduced VAT rate of 3% (instead of the standard 17%) for renovation work on primary residences. This tax benefit is limited to €50,000 per housing unit and applies to most renovation work, though some exclusions exist (such as fitted kitchens and landscaping).

Latest Tax Incentives (2024-2025)

The Luxembourg government has introduced temporary measures to stimulate the property market, applicable to both new and existing properties:

Reduced Registration Fees

Between October 1, 2024, and June 30, 2025, property registration fees have been cut from 7% to 3.5%. This significant reduction applies to both new and existing properties, creating an excellent opportunity for buyers in early 2025.

Enhanced “Bëllegen Akt” Tax Credit

The “Bëllegen Akt” (tax credit on notarial deeds) has been temporarily increased to €40,000 per person (€80,000 for couples) for notarial deeds signed until June 30, 2025.After this date, it may revert to €30,000 per person, though a draft law aims to make the €40,000 amount permanent. This credit applies to both new and existing properties intended as primary residences.

Special Incentives for Energy-Efficient Properties

Properties with high energy efficiency ratings (particularly A+ energy class) benefit from tax exemptions on transfers. This incentive encourages both developers to build energy-efficient properties and buyers to invest in them.

Incentives for Investors

For those considering property investment:

• A €20,000 tax credit per individual is available for VEFA (future state of completion) purchases
• Accelerated depreciation of 6% for 6 years (with a ceiling of €250,000) for new construction investments

Understanding the broader context of contrats de location et droits des locataires becomes important for investors considering rental properties, whether new or renovated.

Making Your Decision: Key Considerations

When deciding between a new property and renovating an older one, consider whether to vendre en privé ou avec un agent immobilier if you’re also selling an existing property to fund your purchase.

For old property renovation:

• Initial purchase cost is lower, but renovation expenses must be factored in
• More subsidy options are available specifically for renovation
• Greater control over final design and specifications
• Preservation of character and architectural features
• Typically better locations

For new property purchase:

• Higher initial cost but no immediate renovation expenses
• Better energy efficiency standards from the outset
• Legal guarantees against defects for 10 years
• Modern layouts and amenities
• Less maintenance in early years

Documentation and Process Considerations

Regardless of which option you choose, proper documentation is essential. Having all your documents nécessaires à une vente organized from the start can streamline the process. For those selling an existing property to fund their new purchase, following a comprehensive liste de contrôle pour la vente d'une propriété ensures nothing is overlooked.

Compréhension quand vendre votre propriété can help optimize the timing of both your sale and new purchase, especially when coordinating renovation timelines or new construction completion dates.

Conclusion: Which Option Offers Better Value?

The answer depends largely on your priorities and situation. Renovating an older property typically offers better value in terms of location, character, and potentially long-term investment returns, especially with Luxembourg’s generous renovation subsidies. The temporary reduction in registration fees until June 30, 2025, makes this an especially favorable time for such purchases.

New properties offer convenience, modern standards, and legal guarantees, but at a premium price. They may be preferable for those who value immediate move-in readiness and don’t want the uncertainty of renovation projects.

With the current set of tax incentives available until mid-2025, both options have become more affordable. For comprehensive guidance on navigating either path, our selling property in Luxembourg guide provides valuable insights into the complete property transaction process.

The decision ultimately rests on your personal preferences, budget constraints, and long-term housing goals. For both options, acting before June 30, 2025, will allow you to take maximum advantage of the temporary tax benefits currently available in Luxembourg’s property market.

For personalized guidance on your property purchase or renovation journey, including detailed market analysis and professional support throughout the process, contact zeas.immo. Our expertise in the Hesperange area and broader Luxembourg market ensures you receive the insights needed to make the right choice for your situation.