The Luxembourg Court of Cassation annuls the Court of Appeal decision regarding non-compete clauses in real estate franchise agreements (SOC1 / XN)

I. Introduction Over the past ten years, the Luxembourg real estate market has experienced record growth: from Q2 2010 to Q2 2021, average prices for real estate ownership increased by 110.8%. [1] With a residential home ownership rate of more than 70% [2], these trends have benefitted not only the majority of the Luxembourg population, but also the real estate construction and brokerage market. In 2021, the number of real estate developers increased by 70% compared to 2020, while the number of registered real estate agencies increased by more than 33% in the same year. [3] While these dramatic developments and high stakes are a source of increasing concern among Luxembourg’s citizens [4]., the country’s real estate brokerage market has flourished, while simultaneously becoming ever