Chargement...
Chargement...
Residual method — Determine the maximum land charge from the sale price
Total sellable living area
Average exit price incl. VAT
Including common areas, parking
Adjustable — LU: 2,500-3,500 EUR/m²
Surveyor, soil, environmental...
Adjustable — typically 7-10%
Technical engineering consultancy
Adjustable — 3 to 8%
Sales, advertising
Interim interest
Programme management
% pre-sold before construction. Impacts finance cost.
Adjustable — typically 10-20% of revenue
Residual method: Sale price - Construction costs - Fees - Margin = Maximum land charge the developer can pay for the plot. In Luxembourg, construction costs are among the highest in Europe (2,500-3,500 EUR/m²). The land charge / revenue ratio typically ranges between 15% and 30% depending on location.
Simplified cash flow over 24 months — VEFA payment calls (50% pre-sold) following the standard LU schedule (5/15/20/20/15/15/10)
| Quarter | Cumul. expenditure | Cumul. revenue | Net position |
|---|---|---|---|
| Q1 (M1-3) | 1.177.850 € | 451.250 € | -726.600 € |
| Q2 (M4-6) | 2.355.700 € | 1.805.000 € | -550.700 € |
| Q3 (M7-9) | 3.533.550 € | 3.610.000 € | 76.450 € |
| Q4 (M10-12) | 4.711.400 € | 5.415.000 € | 703.600 € |
| Q5 (M13-15) | 5.889.250 € | 5.415.000 € | -474.250 € |
| Q6 (M16-18) | 7.067.100 € | 6.768.750 € | -298.350 € |
| Q7 (M19-21) | 8.244.950 € | 8.122.500 € | -122.450 € |
| Q8 (M22-24) | 9.422.800 € | 9.025.000 € | -397.800 € |
Peak financing need: 726.600 € reached in Q1 (M1-3). This is the amount the developer must cover through equity and/or development loan.