Off-plan property sales (VEFA): Understanding for buyers facing difficulties, but no sweeping generalisations

The people who gathered at Place Clairefontaine on 31 October to call for better protection for buyers purchasing off-plan properties (VEFA) deserve to be heard. Investing in a development that has been put on hold or abandoned, and sometimes waiting years for a home, places a financial and emotional burden on buyers that should never be underestimated. Their anger and concerns are entirely understandable.

However, not all property developers are in the same situation. Luxembourg is home to reliable developers who deliver their projects on time, honour their commitments and respect their buyers. They rely on strong financial resources, secured project financing, extensive experience and trusted partners, including architects, construction companies, banks and guarantors. Treating all developers alike unfairly penalises those who fulfil their responsibilities and deprives buyers of valuable criteria for making informed decisions.

VEFA remains a well-established and proven model. It links payments to construction progress, provides buyers with greater visibility and makes homeownership accessible without requiring them to finance a fully completed building upfront. The difficulties encountered concern specific projects and companies, for a variety of reasons, rather than the model as a whole.

Trust can only be restored through stronger buyer protection and greater transparency: genuinely effective completion guarantees, clear information for buyers before signing the notarial deed, and reliable criteria for identifying trustworthy developers, such as financial stability, track record, completed projects and the identity of their partners. We support stronger regulations that protect buyers while distinguishing responsible and reputable developers. The industry must be prepared to be held accountable to these standards.

Günther Beining - Managing Director, Thomas & Piron Luxembourg