Follow-up report on countries that received ESRB warnings in 2016 on medium- term vulnerabilities in the residential real estate sector September 2019

I have the pleasure to send you below a section of the report from the ”European Systemic Risk Board” confirming an overheating of the property market in Luxembourg.

Today i’m not trying to explain the main reasons for the overheating of the market,  also I will just mention one example among  other things, as an increase of the credit rates followed by some departures of some big companies (just an example). The increase in the interest rates is just a question of time, and yes the banks in Luxembourg are extremely exposed on the real estate market in Luxembourg.

With my best regards,

YOUS BUSINESS AND CONSULTING

Luc Schuller | General Partner

76/78 Grand-Rue L-1660 Luxembourg

contact@yousconsulting.com

 

2.5 Luxembourg
The key vulnerabilities identified in 2016 were related to high and increasing household indebtedness and to strong growth in house prices. Household debt for house purchases was increasing rapidly and there were some concerns with regard to the tail distributions of lending standards. Household indebtedness was very high relative to income compared with other European countries. House prices were increasing very strongly, reaching unprecedented levels and surpassing income growth.
Household indebtedness has continued to increase rapidly, supported by mortgage lending, with some concerns regarding lending standards. Household debt stood at 171% of disposable income in Q4 2017 and it was up by 12 percentage points compared to three years before. Lending for house purchases continued to grow strongly, by between 6% and 7% annually between 2016 and 2018 (adjusted for sales and securitisations). The most recent data, based on new reporting for 2018, imply that pockets of vulnerabilities related to lending standards may exist.
House prices have continued to grow, but at a slower pace (with dynamics at around 3% in 2018, compared with 6% in 2016), amid existing concerns about overvaluation. However, the long period of RRE price increases is indicative of a build-up of overvaluation. Beyond the low level of interest rates, demand and supply factors such as high net migration and land availability constraints have continued to put pressure on house prices.

DIR WËLLT ÄERT HAUS/APPARTEMENT/STUDIO VERKAFEN ODER VERLOUNEN ? BEI EIS KRITT DIR DÉI BESCHTE BERODUNG YOUS REAL ESTATE BUSINESS & CONSULTING TEL. 691 22 57 57 oder hello@yous.lu

YOUS REAL ESTATE AND BUSINESS CONSULTING GROUP S.A. Commercial and Residential Real Estate in LUXEMBOURG Contactez-nous.

DIR WËLLT ÄERT HAUS/APPARTEMENT/STUDIO VERKAFEN ODER VERLOUNEN ? BEI EIS KRITT DIR DÉI BESCHTE BERODUNG YOUS REAL ESTATE BUSINESS & CONSULTING TEL. 691 22 57 57 oder hello@yous.lu

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YES, IT IS POSSIBLE TO BUY A HOUSE WITH BITCOINS

While the popularity of Bitcoin continues to grow, some industries, such as real estate, are capitalizing on this emerging trend. As a result, more and more of them are taking over Bitcoin transactions.

And some real estate sites are now dedicated to this method of payment, as it will be soon for YOUS REAL ESTATE AND BUSINESS CONSULTING GROUP S.A.,Commercial and Residential Real Estate Group.

Also many real estate transactions have already been settled in Bitcoin currency.

In New York City, we have already seen sales of homes and apartments exchanging Bitcoins, and it’s only a matter of time before we can also afford commercial spaces with virtual currency.

Volatility that can lead to a few surprises

Despite the uncertainties surrounding the Bitcoin market, some of the tech savvy investors and real estate agents seem, for the moment, ready to take risks related to a change in the price of cryptocurrency.

We invite you to follow us in our efforts to create this new market in Luxembourg.

 hello@yous.lu

YOUS REAL ESTATE AND BUSINESS CONSULTING GROUP S.A.

Commercial and Residential Real Estate Group

You can find further information on our website www.yous.eu or under our blog https://yousrealestatenews.com

Bitcoin.jpg

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76/78 Grand-Rue L-1660 Luxembourg
+352 691 22 57 57 OU 27 47 81 41
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LUX REAL ESTATE OVERVALUED BY 6.85%

The rampant rise of Luxembourg property prices is partly down to an overvaluation, an economist at the BCL, Luxembourg’s central bank, has said.

In a report published on 13.02.2018, Sara Ferreira Filipe found that high residential real estate prices have led to an expansion of mortage credit, “which in turn triggers a further price increase”.

This, coupled with a limited supply and high demand from positive migration, “only partly explains the price dynamics of the residential real estate market in Luxembourg,” she wrote.

The tipping point was a “moderate but continued overvaluation of property prices”. Ferreira Filipe estimated the overvaluation at on average 6.85% since the start of 2012, but says the trend decreased over the last few quarters.

The economist further says that a correction of this overvaluation has been slower in Luxembourg than in other countries “at an average rate of 2.2% of the overvaluation each quarter.”

This, she states, means it will take 31.5 quarters (7.8 years) to reset half of the deviation from the fundamental value.

“In comparison correcting the deviation of mortgage credit from its own fundamentals takes only about a quarter,” the economist wrote, adding: “In sum, the results suggest that an imbalance in the mortgage market is corrected faster than in the real estate market.”

Residential real estate prices rose by 40% in Luxembourg from 2006 to 2016. Latest figures on house prices in Luxemborg

 

recorded a 4.9% increase from the third trimester of 2016 to the third trimester of 2017. A joint report from Statec and Liser found that the average price of a family house reached €649,425, an existing flat €5,002/sqm (+4.7%) and a new flat €6,316/sqm (+6.1%).

hello@yous.lu

YOUS REAL ESTATE AND BUSINESS CONSULTING GROUP S.A.

Commercial and Residential Real Estate Group

76/78 Grand-Rue L-1660 Luxembourg
+352 691 22 57 57 OU 27 47 81 41
Facebook | Twitter | http://www.yous.eu

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Copyright © 2018 Yous Real Estate Group,
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FORMULA 1 GRAND PRIX DE FRANCE 2018// RENT OUR STUNNING PROPERTY NEXT TO THE CIRCUIT

FORMULA 1 GRAND PRIX DE FRANCE 2018

Circuit Paul Ricard | Le Castellet, France

Dates:

22 June Friday (Practice)
23 June Saturday (Qualifying)
24 June Sunday (Race)

Located in the South of France at the Circuit Automobile Paul Ricard, the Formula 1® Grand Prix de France 2018 will be returning after a 10-year stint off the Formula 1® calendar.

YOUS REAL ESTATE AND BUSINESS CONSULTING GROUP S.A.
HAS THE PLEASURE OF RENTING YOU FOR THIS UNIQUE PERIOD (10) DAYS A STUNNING VILLA IN LE CASTELLET, WITH SWIMMING POOL, SEA VIEW, HELICOPTER LANDING STRIP, AND THIS JUST 30 MINUTES BY DRIVING FROM THE FORMULA 1 CIRUIT PAUL RICARD.

 

FOR MORE INFORMATIONS: http://www.yous.lu/fr/for-rent/fr003443-magnifique-villa-de-charme-avec-piscine-vue-sur-mer-occasion-grand-prix-de-france-formule-1-le-castellet-juin-2018

 

hello@yous.lu

YOUS REAL ESTATE AND BUSINESS CONSULTING GROUP S.A.

Commercial and Residential Real Estate Group

76/78 Grand-Rue L-1660 Luxembourg
+352 691 22 57 57 OU 27 47 81 41
Facebook | Twitter | http://www.yous.eu

Add us to your address book

Copyright © 2018 Yous Real Estate Group,
All rights reserved. –
contact@yous.lu