51.9% to 48.1% – numbers you will not forget so quickly. On 23 June 2016, the United Kingdom has voted to leave the European Union. Now, it is scheduled to depart on 29 March 2019. According to a recent KPMG report on the Brexit strategy implementation, Luxembourg is the preferred destination of companies willing to relocate from the UK after Brexit. The majority among the 32 companies which have already announced their move to the grand duchy works in insurance or asset management.
So far, the topic of relocation is mainly characterised by how Luxembourg can attract more and more companies after Brexit, however, one should also start looking at the topic in a different manner. More companies coming to Luxembourg will also mean that the grand duchy needs to be ready for an immense increase in real estate demand. In this regard, one should consider that already today the country’s real estate market is highly dynamic and constantly evolving.
Luxembourg has already outstanding expertise in accommodating businesses and companies from all over the world.
Bruno Lux, Partner & co-founder (Axento)
Here the sector benefits from the country’s migratory surplus and its constant growth. By January 2018 the grand duchy first exceeded the number of 600,000 inhabitants with 24,379 arrivals compared to 13,831 departures in 2017. In the past decades, it was, above all, immigration that made Luxembourg a particularly attractive location to work and live. Nowadays, the multicultural and multilingual country in the heart of Europe does not only host companies from around the world but also European institutions. Being an international finance and business centre, Luxembourg has already outstanding expertise in accommodating businesses and companies from all over the world.
Nevertheless, with the advancement of the negotiations about the future relation between the UK and the EU, Luxembourg might face a new type of relocation in the upcoming years. Thousands of people concerned by their companies’ relocation due to Brexit might probably have a good knowledge of the Luxembourgish financial industry. Yet, they might know only very little about the country itself.
Accordingly, real estate agencies need to adapt their working habits and practices, especially, since they play an integral part of a transferee’s move. As for most of the new arrivals their real estate agent will be the first and, in the beginning, only contact in their new community, he or she will play a crucial role in educating the new arrival about the society, the real estate market, or schools. The work of a real estate agent will not only lie in selling or renting a property but in presenting the country and its culture.
Your home is our ambition.
As moving to a new country, first of all, means looking for a place to stay, the new home will not only be your safe heaven but also the centre of a new start. Therefore, the expats’ choice should rely on expertise with an individually optimised service and guidance for each client. Among others, this should include a precise location comparison for costs of living and housing, counselling on strategies for reducing the impact of relocation, wide and deep connections with local organisations and partners helping to join the new community, and guidance and advice on tax and legal implications.
Next to these factors, the portfolio of a real estate agency remains a crucial factor. Expats from the UK should try to look for real estate projects which are developed to be an urban residential quarter which unites living, working and consuming as well as recreation activities. Living in such a project might make the path to a successful relocation shorter and easier. This is something we already see today in our daily work, where English-speaking clients are often attracted by projects which have an international flair and cosmopolitan vibes and which are as close as possible to what they are used to.
So how will you succeed with your relocation and find the best starting point for a new beginning? As simple as that: let yourself be guided by someone who not only knows the country, the different areas and its advantages or peculiarities, but by someone who can give you advice on who can advise you on unspoken or unanswered questions in your head. By teaming up with strong local partners and experts who are not only experienced in real estate but also have intercultural skills and understand your concerns, you can sit back and trust us. Be assured, your home is our ambition.