20 ans Reinig Promotions
I warmly welcome you to the 20th anniversary of Reinig Promotions. I greet the officials of the Diekirch municipality, the business owners and representatives of the many skilled trades that have worked with us over the past 20 years. The owners of the Résidence Dominique where we are gathered today. The owners of Résidence Paul, currently under construction next door. And the owners of the very first residence we ever built.
Business owners and representatives of planning offices, banking representatives, all our guests, all my colleagues and my family.
Reinig Promotions was founded by notarial act on June 11, 1998, with the objective—clearly stated in its name—of carrying out real estate development projects.
In 1998, just before the turn of the millennium, Luxembourg had 424,000 inhabitants. Today, 20 years later, that number exceeds 600,000—an increase of over 40%.
Interest rates were over 7% back then; today they are under 2%.
Our first residence was built right here in Diekirch, in the Sauerwiss area: Résidence Marguerite. Over the course of 20 years, many projects have been realized. The largest was in my hometown Bettendorf, a mix of single-family homes, two-family homes, and one residence—26 lots in total.
Here in Diekirch, we are very active. This year we have five construction sites: two are nearly finished, one is underway, and two are in planning. At this point, I would like to highlight the excellent cooperation with the municipal services of Diekirch. In addition to Diekirch, we currently have two construction sites in Bettendorf, two in Christnach, and one in Niederfeulen. Apartments are also being planned in Moestroff and Stolzembourg.
Plans, calculations, and project follow-up were handled by external offices; everything else was done in-house by our team—not only administrative work, but also a variety of tasks that landed on the desks of my staff and myself when they became too complex.
Over the past 20 years, building regulations have undergone major changes: the new building law of 2004 with its many amendments, the 2008 water management law—a completely new concept, energy efficiency regulations, ever-changing municipal development plans (PAGs), and entirely new ones that affect building height, apartment size, and construction density. All this has driven up development costs and, inevitably, sales prices. Administrative requirements—plans, calculations, studies, analyses, taxes—now account for 25 to 30% of the total cost. The much-criticized high land prices make up about 30%, which is relatively modest compared to administrative costs. The recent sectoral plans are moving toward even more bureaucracy and expropriation, with more and more preemptive rights hindering sales.
Politics claims that housing is too expensive and suggests that building more and reducing land prices arbitrarily would be the solution.
I do not agree with that view.
High construction costs remain even if we build more. Lowering land prices is unrealistic due to high infrastructure costs and a strong economy. Instead, policies should make building easier with fewer administrative complications. This would allow people with modest budgets to buy again. As things stand, more and more households are pushed into social housing—a sector with many closed doors and very little actual construction, as we see with the Fonds du Logement.
Approval procedures lasting 5 to 10 years must be shortened. Otherwise, rising interest rates will inevitably lead to a sharp increase in prices, and Luxembourg’s second-largest economic sector could collapse.
One politician recently shared his vision for future construction—focused on ecology and energy standards. At the end of the talk, a man stood up and said, “It all sounds right, but it’s too expensive. I can’t afford it.” The politician responded that future regulations must be reviewed for economic viability and affordability.
So maybe there’s still hope!
When drafting building regulations, real-world players must be involved. It’s unacceptable—as recently happened to me—that a municipal engineer can no longer tell me what I’m allowed to build under the new PAG. Or, as was the case during a PAG information session, the planning bureau admitted, “We’ve never built a house.” This mindset must change. Those on the ground need a seat at the table when writing laws and regulations.
Despite all the criticism, let’s not forget that 75% of households in Luxembourg are homeowners—twice the rate of our neighboring countries.
This percentage must not decrease in the decades to come! That’s why promoting widespread homeownership must remain a goal.
Real estate development involves large sums of money—and with it, high risk. Estimates and reality don’t always match. Only a well-functioning partnership between planning offices, contractors, banks, and developers ensures the success of a project.
At Reinig Promotions, our sales and rental teams provide cross-functional support.
Sandra Kolbach plays a key role here. Sandra has been active in real estate for 16 years, and the last 5 with our company. Sandra, this bouquet of flowers I give you today, on behalf of your entire team, is a token of my appreciation and respect for the success you’ve all made possible at Reinig Promotions.
Real estate promotion always carries some risk. Banks—our most important partners—prefer zero risk. Thank you to the banking officials for their past trust and good cooperation, which matter just as much as financial figures.
The fact that we are celebrating here today is pure coincidence: the completion of Résidence Dominique coincides with our 20th anniversary.
Résidence Dominique has 11 apartments totaling more than 800 m2 of living space, 10 garages, and 2 outdoor parking spaces. Construction lasted 24 months. All apartments face south, have large balconies, and offer bright interiors with panoramic views.
The site is served by two bus lines to Echternach and Vianden. These apartments are ideal for both living and renting. Congratulations to the owners—you’ve made a first-class investment.
Starting at 6:30 p.m., you can register at the “Guided Tour” stand to view the building and visit various apartments. On the top floor, in my daughter Marguy’s apartment, you will also be warmly welcomed. Right next door, we are building Résidence Paul, a mirrored version of Résidence Dominique. Several units are still for sale. What you see here, you can purchase there.
In conclusion, I’d like to thank all the companies and offices we’ve worked with over the past 20 years. There are too many to name individually.
To all our clients who have invested with us, my colleagues and my family, and the Gohse-Lommel family, previous owners of this land.
Flowers speak louder than words. That’s why I give this bouquet to Laure, my wife.
To Marcelle Wagner, who organized this celebration.
To Marthe Brimmeyer, who contributed greatly to this celebration.
To Dominique Steiner, wife of Paul Jr.—this residence is named in her honor.
And three blue roses—the company’s color—for Dominique and Paul’s son, my grandson, Nicolas Reinig.
Thank you to my entire team. We are only strong together if each individual is strong—and you are.
Thank you all for your support and for being here today.
Let’s now celebrate together with a drink and some good food.