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Housing: property developers and banks continue to mobilise

Published on 21 January 2025

Conscious of the economic and social importance of the housing issue, the ABBL supports any project that brings residential housing onto the market. It has thus teamed up with the Chambre immobilière to raise awareness on certain initiatives aimed at bringing greater transparency to the market and boosting the confidence of first-time buyers and investors alike.

Summary

    New measures to support the market

    At a conference organized on 15th October, as well as at a press briefing held on 21st October, officials from the Chambre immobilière presented a new quality charter (charte.lu) and the aides.lu website, while ABBL’s CEO Jerry Grbic announced adjustments to the SPV Prolog Luxembourg S.A. residential housing aid mechanism.

    This vehicle set up by five banks: Spuerkeess, Banque Internationale à Luxembourg (BIL), Banque Raiffeisen, Société Nationale de Crédit et d’Investissement (SNCI) and Banque de Luxembourg aims to unblock the situation of properties where construction has started but which cannot be put on the market due to a lack of sufficient pre-sales.

    Prolog provides predictability: for buyers who have already invested in the project. For developers who wish to complete their construction. For the tradesmen who have been appointed. And finally, for potential buyers. Everyone will know that the project will be completed.

    Jerry Grbic

    CEO, ABBL

    Adjustments announced

    The adjustments announced at these meetings are as follows:

    • Launched in July 2024, the scheme has been extended until 30 June 2025. 
    • Its shareholders have decided to make a number of adjustments to better reflect the reality of the market:
      • the minimum pre-sale rate required to be included in the scheme has been reduced from 50% to 30%.
      • fees have been adjusted so as not to penalise smaller projects.

    Fully utilised by developers, the Prolog scheme will enable between 800 and 1,300 homes to be put on the market.

    For more information, read the Chambre immobilière – ABBL press release.