COVID-19 has accelerated the technological transformation of a number of business sectors in Luxembourg. The real estate industry, however, is resisting change and is yet in the very early stages of its digitalization. Young consumers arriving on the market, looking for transparence and visibility on their undertakings, will certainly accelerate the digital transformation of the real estate industry in Luxembourg.

How advanced is the digital transformation of the real estate sector in Luxembourg?

The health crisis has forced real estate professionals to rethink their work processes by developing online and virtual visits, among other things. Whether carried out via Whatsapp, FaceTime, or integrated into listings on real estate websites, online visits have initiated the cautious digital transformation of the real estate sector in Luxembourg.

The municipalities of Luxembourg and of Esch-sur-Alzette have already implemented paperless administrative services to obtain building permits. It is now possible to file an application by filling in a form 100% online. What about other towns and services? They haven’t progressed much for the moment and still require the use of physical media.

What is happening in other countries?

The digital transformation of the real estate sector differs in each country, but a few have already been won over by the dematerialization of administrative processes and of other real estate activities.

France authorized back in 2020that a deed of sale could be signed remotely without a power of attorney. In Denmark and Finland, people no longer go to the notary to sell or buy real estate. In the United States, a country at the forefront of many innovations in the real estate sector, a Marketplace system called Peer-to-Peer (or P2P) was developed online where investors can get together to carry out joint projects. It is now possible to carry out projects that were, until recently, financially and technically out of reach.

How can Luxembourg catch up in its digital transformation?

• Even though the system was adopted by a few municipalities in the Grand Duchy, building permit applications carried out completely online are far from being commonplace. The development of a national standardized platform would allow its broader adoption by all the municipalities.
• To facilitate access to investment opportunities and deal with the rise in real estate prices in Luxembourg, players in the sector could set up Peer-to-Peer Marketplaces.
• In France’s footsteps, the country should quickly authorize secure electronic signing of administrative documents such as sales agreements, deeds of sale, loan offers, etc.
• In order to sustain their growth, professionals in the sector will have to adopt the use of Smart Documents. Administrative real estate documents are plentiful and time-consuming (sales contracts, mortgage documents, legal contracts, insurance, etc.). Automating their processing would allow professionals in the sector to reduce the risk of human error and above all save precious time.

Finally, tools to track in real time the progress of orders placed online have been around for years. Would it be possible to adapt these tools to real estate investments of hundreds of thousands of euros and thus track the progress of the various regulatory approvals?

If you are looking for a house for sale, an apartment for sale, a house for rent or an apartment for rent , visit Immotop.lu.