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According to official data, housing prices in Luxembourg jumped by more than 10% year-on-year in the first quarter of this year amid some signs of cooling of the country's real estate market.
Details. According to a report by the Luxembourg statistical agency Statec and the housing research body Observatoire de l'habitat, over the year to the end of the first quarter, housing prices in Luxembourg increased by 10.5%.
There was a minor increase than the 12-15% annual rise in house prices observed since 2018, peaking at 17% in 2020. In a few countries, property prices have risen as sharply as in the Grand Duchy in recent years.
Sales and prices. The price surge also occurred against the background of a drop in the number of transactions, which decreased by more than 2% compared to the first quarter of 2021. The average cost of an apartment in Luxembourg is now €688,428.
The prospects. Luxembourg will need to build about 7,500 additional properties annually between now and 2026 to keep up with growing demand, a think tank has said, warning that the country's housing crisis could worsen significantly.
Context. Real estate in Luxembourg has almost doubled in price in the decade since 2010, which is the third-largest increase in the EU. At the same time, the International Monetary Fund warned that the Grand Duchy needs to take urgent measures to cool the housing market.
Source: Luxembourg Times
Photo: Dylan Leagh
