New Build vs. Existing Property in Luxembourg 2026: What Impact for Sellers?

In 2026, the Luxembourg real estate market shows two distinct dynamics: new construction (VEFA) and existing properties. For sellers of existing properties, understanding this competition is essential for proper positioning.

The New Build Market in 2026

The VEFA sector (Sale in Future State of Completion) is going through a difficult period:

• Delayed deliveries due to developer difficulties
• Reduced supply of new programs
• High prices per m² (€8,000-12,000/m² depending on location)
• 3% VAT maintained (instead of 17%) for primary residence

Advantages of New Build for Buyers

Despite the context, new builds retain advantages:

• Reduced 3% VAT: Savings of €50,000-100,000 on an average property
• Energy performance: Class A/B guaranteed, reduced charges
• Guarantees: Ten-year, perfect completion, two-year
• Customization: Choice of finishes possible
• No work needed: Immediate move-in without surprises

Advantages of Existing Properties (Your Property)

Existing properties have solid arguments against new builds:

• More attractive price per m²: 15-30% cheaper than equivalent new build
• Immediate availability: No 2-3 year wait
• Premium location: The best spots are already built
• Charm and character: Volumes, moldings, period parquet
• Established neighborhoods: Shops, schools, transport already in place

How to Position Your Property Against New Build?

To stay competitive, here are our tips:

1. Focus on energy performance: If possible, improve the energy certificate before selling. Moving from F to D can justify 10-15% more.
2. Emphasize location: Highlight proximity to amenities that new builds don't have yet.
3. Competitive pricing: Position yourself 20-25% below comparable new build to stay attractive.
4. Transparency: Provide all diagnostics and property history.

The Profile of Existing Property Buyers

Your property attracts specific profiles:

• Families looking for quickly available space
• Investors seeking better rental yield
• Buyers sensitive to the charm of older buildings
• People who can't wait 2-3 years

Conclusion

In 2026, existing properties retain solid arguments against new builds. The key to success: a realistic price and highlighting your specific advantages. With Sellect.lu, find the agency that will optimally position your property against new build competition.