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Your secured High performing investment in Luxembourg

1. High Retun, low risk

When evaluating investment opportunities, the risk/return profile is a fundamental factor to assess. It provides a framework for understanding the potential reward relative to the level of uncertainty or volatility associated with a given asset. In this context, real estate offers an attractive balance: it tends to deliver good, stable returns while generally exhibiting low volatility. This combination makes it particularly appealing to investors seeking long-term capital preservation, income generation, and diversification within a broader portfolio.

"Risk and return are two sides of the same coin."

— Peter L. Bernstein, Against the Gods: The Remarkable Story of Risk, 1996

"Risk comes from not knowing what you're doing."

Warren Buffett, speech at University of Nebraska, 1994

High return

A Unique Opportunity in Luxembourg’s Residential Market

Invest in and benefit from attractive returns ranging from 5% to 6%, depending on the unit you choose.

risk

A number of strong advantages make a low-risk investment choice

▪ A train station within walking distance

▪ Close proximity to the city center and Kirchberg districts

▪ Well-designed, high-quality apartments

Evolution of the Average Gross Rental returns

Observatoire de l’Habitat, calculations based on two hedonic models using actual sale prices (notarial deeds) and advertised rents

▪ Spacious, attractive outdoor terraces with varied orientations and atmospheres

▪ An on-site convenience store open from 6:00 AM to 10:00 PM offers everything young professionals need in one place

2. Capital Value Increase

Why Luxembourg residential prices are expected to rise again over the next five years

A Market in Temporary Contraction

The Luxembourg housing market is currently experiencing one of its sharpest slowdowns in recent decades. Offplan apartment sales collapsed by around 75% in 2023–2024 compared to pre-crisis volumes, as higher interest rates, inflation, and reduced household purchasing power forced many buyers to delay decisions. Developers have responded by postponing or cancelling projects, further limiting the pipeline of future housing supply.

Economic and Demographic Growth Remain Solid

Luxembourg’s fundamentals remain strong: GDP growth is forecast at +2.5% in 2025 and +2.6% in 2026, unemployment is low, and the country continues to attract international talet. Population growth — driven largely by immigration — has averaged over 2% per year. These trends mean that underlying housing demand will return quickly once affordability conditions improve.

Supply Shortage Will Deepen

Statec, Eurostat

While demand has temporarily cooled, Luxembourg’s structural housing shortage has not gone away. The country still needs between 5,600 and 7,500 new units per year, yet current production is closer to 4,000 — and likely to drop further given today’s slowdown in building permits. This means that once economic and financing conditions improve, the imbalance between supply and demand will be even more acute, creating strong upward pressure on prices.

Limited construction today induces higher prices tomorrow

The sharp fall in off-plan sales today will translate into fewer housing completions in 2–3 years, just as demand begins to rebound. With a smaller pool of new units coming to market, competition among buyers is likely to intensify, driving prices higher.

Additional Price Drivers

▪ Energy efficiency regulations: Newer, greener buildings will command a premium, and older stock will require costly upgrades pushing buyers towards high-quality new builds.

▪ Tax incentives: Reduced VAT on new homes, capital gains exemptions, and favourable conditions for buy-to-let investors will continue to attract capital.

▪ Safe-haven appeal: Luxembourg remains politically and economically stable, making it a preferred market for both local and international investors.

1. Timing is everything

Positioning ahead of the next growth cycle

Today’s environment offers discerning investors the chance to enter at more attractive conditions, before prices regain upward momentum. Signs of market stabilisation are already visible, with transaction volumes improving and interest rates expected to ease over the medium term. In a market as supplyconstrained and resilient as Luxembourg’s, investing now means securing quality assets at a favourable point in the cycle—well-positioned to benefit from both capital appreciation and robust rental demand in the years ahead.

Change in the number of sales of houses and apartments

“Renewed momentum on the Luxembourg property market?

The real estate market in the Grand Duchy of Luxembourg has been through a turbulent period since 2022. Under the effect of economic uncertainties, rising interest rates, slowing construction projects and price adjustments, the usual points of reference have been disrupted. However signs of a rebalancing following the storm are emerging.”

—

Spuerkeess,

May 2025

The

first semester of 2025 confirms a promising trend: buyers are returning

The number of prospects on properties for sale increased by 50% compared to early 2024, and by 150% compared to 2023 (Spuerkeess, Immotop). This renewed interest, supported by price stabilisation, is a key indicator of the market’s recovery. It reflects consumers’ desire to reposition themselves and explore their options again. This is the first important step towards rebalancing the market.

A Market Emerging from its Shortest Downturn in Decades

Since 2007, the Luxembourg real estate market has moved through the classic stages of its cycle—recovery, growth, and maturity—each phase typically unfolding over several years. This steady rhythm was disrupted when the market underwent an unusually rapid shift into the final stages of the cycle.

Number and financial volume of apartment sales

Statec, Eurostat

. The slowdown and decline phases, which historicaly can stretch over several years, were remarkably short in Luxembourg—lasting just one year each.

Residential price evolution in Luxembourg

Statec, Eurostat

This rare compression is largely explained by the sudden and steep rise in interest rates, an external shock that temporarily stalled activity.

(Source: STATEC – Luxembourg Residential Market Cycle, Immotop.lu)

The market reached its low point in 2023. The year 2024 has brought the start of a rebalancing phase: transaction prices have eased, making residential property more accessible to buyers.

This price adjustment, combined with renewed confidence, has sparked a sharp rise in sales volumes of existing properties, confirming that the market is regaining momentum and entering a new cycle of opportunity.

4. Location, location , location

Why young professionals will want to become — and remain — tenants at

Excellent connectivity

Dommeldange train station is only 350 meters away — just one stop from Luxembourg Central Station.

Prime location:

The Hive is located at the foot of the Kirchberg business district.

Close to everything:

City Center and Limpertsberg are just minutes away by public transport or bike.

Everyday convenience:

A grocery store on the ground floor meets the needs of busy young professionals.

Nearby opportunities:

Students and medical staff from the Eisch Clinic, located right across the street, will also find The Hive highly appealing

"The three most important things in real estate? Location, location, location."

Harold Samuel, 1926

5. The product

A Landmark in the making

The Hive is a residential project that perfectly reflects the spirit of its time. In a city where space is scarce and demand continues to grow, it embraces the opportunity of vertical living, making the most of every square meter.

With its striking contemporary architecture, the Hive is set to stand out not only for its design but also for the lifestyle it offers. Every detail — from its efficient layouts to its premium amenities is conceived to meet the needs of a new generation of urban dwellers.

Strategically positioned at the foot of Kirchberg, The Hive combines connectivity, convenience, and community. Its bold presence will soon make it a recognizable landmark in Luxembourg’s residential landscape, symbolizing modernity, smart urban planning, and aspirational city living.

Designed for performance and comfort

The Hive has been conceived with two clear objectives: delivering strong investment performance for its owners and offering exceptional quality of life for its residents. Every square meter has been optimized — there is no wasted space, and every element is thoughtfully placed to maximize functionality and comfort.

From intelligent layouts that ensure light-filled interiors, to finishes that balance style with durability, The Hive offers a living experience that is both practical and highly enjoyable.

It is a residence where design serves both the financial goals of the investor and the wellbeing of the occupant, creating lasting value on every level

Exteriors designed to enhance everyday living

At The Hive, outdoor spaces are more than just an architectural feature — they are an integral part of the living experience. The residence offers three distinct terraces, each with its own unique exposure, allowing residents to enjoy the outdoors in different moods and moments throughout the day.

The roof garden is a hidden gem, overlooking a serene, lush landscape where the Alzette River gently winds its way through the greenery. It is a place of calm and natural beauty, offering a rare sense of escape right in the city.

The main terrace has been designed on a scale that invites variety. Here, several ambiences can coexist: a quiet reading nook bathed in natural light, a convivial dining area for hosting friends, or a simple spot to enjoy a solo meal while taking in the sweeping views of nature and the river.

These shared outdoor areas are more than just spaces — they are social catalysts, where residents can meet, connect, and embrace the very best of Luxembourg’s quality of life.

Extensive Experience

6. A trusted partner Financial Strength and Stability: Collaboration with Industry Leaders:

LuxRED has a proven track record with landmark projects such as Infinity, Nova, and Auguste V. The founding partner who manages the company have successfully navigated through multiple economic and real estate crises —in 2000, 2008, and most recently 2022— , demonstrating resilience and adaptability in changing market conditions.

LuxRED surrounds itself with top-tier partners to ensure excellence across all facets of a project.

These include:

▪ Banks: BGL, BdL, BIL

▪ Project Management & Construction Economics: QB, Inéo

▪ Engineering Consultancies: ICB, Six

▪ Architects: ACOM, Art & Build, Moreno Atelier

▪ Control & Compliance: OGC

By collaborating with these reputable firms, LuxRED ensures high standards and reliability in every project phase.

LuxRED maintains solid financial health, managing a portfolio valued at €320 million while carrying a debt load of only €520.000€. Furthermore, the company’s sustainability is secured by diversified revenue streams, reducing dependence on any single source.

Specifically for the Hive :

This project carries no outstanding bank financing, a clear testament to LuxRED’s prudent and robust financial management. In addition, the company safeguards its developments through a DC10 insurance policy, reinforcing its dedication to long-term stability and comprehensive project security