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Strengthening relationships among real estate stakeholders

With 230 members, LuxReal brings together all real estate stakeholders in Luxembourg, representing the sector's diverse professions. Its president, Romain Muller, discusses the key role the association plays at the national level and its ambitions to serve its members. During times of crisis, in particular, mutual support is essential. “We are here to strengthen relationships between stakeholders while generating added value for each of our members”, he explains.

Romain Muller
President of LuxReal

Can you remind us of the association’s ambitions?

Romain Muller: LuxReal was born in the wake of the 2008 financial crisis, which left many real estate professionals facing significant challenges. At that time, most professions within the sector were represented by their own organizations. However, there was a lack of a cross-disciplinary structure that could unite all stakeholders. In view of the current challenges, it was important to be able to exchange ideas among ourselves, bringing together architects, developers, builders, banks, and consulting firms… in order to better support each other, explore solutions to energize the market, and drive it forward. LuxReal was created to fulfill this goal.

How has the association evolved?

Romain Muller: Today, LuxReal has 230 members, including developers, architects, banks, investment funds, consultants, and lawyers. We are proud to represent the diversity of stakeholders shaping Luxembourg’s real estate sector. Members regularly gather at high-quality events designed for networking. Beyond fostering connections, we also host events focused on specific themes, such as market conditions, regulatory changes, or professional practices. This allows our members to deepen their knowledge and enhance their understanding of real estate-related challenges.

What are the association’s ambitions for 2025?

Romain Muller: We aim to continue supporting the sector by helping members strengthen both their connections and their expertise. This involves enhancing communication through the implementation of a regular newsletter and content sharing. Another important initiative is the creation of the LuxReal Academy. Beyond our events, we want to offer sessions that allow members to deepen their understanding of the various real estate professions. These sessions will enable members to present their work, share best practices, and foster stronger relationships while generating added value for all members. Access to these sessions will be free for our supporting members. Non-members will be able to access the sessions for a fee.

The association was founded in response to a challenging economic climate in the late 2000s. The past three years have also been particularly complex for market players. How has LuxReal contributed to their resilience?

Romain Muller: Dialogue among stakeholders helps anticipate the impacts of a crisis. For example, an architect discussing with a banker who explains the effects of rising interest rates or new regulations will better understand how access to credit might become more difficult. This kind of knowledge encourages caution. Similarly, we can collectively consider solutions to re-energize the market and support future developments.

Our board now includes representatives from the main professions within the sector, allowing us to act as a key point of contact when engaging with the government. Over recent months, we have engaged in significant political lobbying to secure measures that protect those driving the real estate market in Luxembourg. This is a national issue, as it involves safeguarding jobs, production capacity, and the country’s attractiveness and competitiveness. In this context, maintaining close relationships among stakeholders is an asset. It allows us to support each other and facilitate deals in a complex environment.

How does LuxReal contribute to showcasing Luxembourg’s real estate expertise internationally?

Romain Muller: We are a 100% local association, but our ambition is to represent the sector nationally and at major international events. We are present at MIPIM as part of the Luxembourg delegation. In partnership with ALFI, we are directly involved in the effort to recreate a Luxembourg representation at Expo Real in Munich. Luxembourg has significant expertise in architecture, engineering, and fund management, which we must showcase abroad.

What is your perspective on the current market?

Romain Muller: The market remains challenging, though we are seeing some improvements. In the existing residential sector, prices have decreased by 10% to 20%. This correction is reasonable, as it was abnormal for existing properties to sometimes be more expensive than new ones, especially given differences in energy efficiency. With these price reductions, the market is showing signs of recovery, despite interest rates having quadrupled. While central bank rates have begun to decline, this change is only marginally reflected by banks. This indicates that the market slowdown wasn’t solely due to reduced borrowing capacity among buyers but also a conservative approach by banks. The existing property market is recovering, but new developments are still lagging.

What will be the major challenges for 2025?

Romain Muller: Supporting the recovery is key. For new developments, this means facilitating access to financing. Banks must demonstrate flexibility and creativity in the solutions they offer. Additionally, we must work together more than ever to find solutions that ensure the completion of ongoing projects.

Today, we are regaining visibility. It is crucial to support existing projects, re-energize the market, and enable new developments. Everyone must take responsibility, as an excessive housing deficit would be disastrous for the overall economy. Demand remains high, as evidenced by rising rents. By working together, we can address these challenges and create the conditions for sustainable growth in Luxembourg’s real estate sector.