Luxembourg's statistics service Statec and the Housing Observatory have delivered an indisputable verdict: housing prices in Luxembourg are climbing relentlessly and the situation is intensifying.
To call a spade a spade, housing prices have exploded in 2019. The increase of prices, to make matters worse, is exponential and keeps going in the same direction.
In 2016, housing prices rose by 6%. In 2017, it was 5.7% while in 2018, prices ballooned by 7.1%. 2019, however, set a new record: housing prices went up a steep 11.4% during the second trimester (compared to the same period in 2018). The figures in greater detail:
- +10.7% for old apartments
- +11.5% for a new apartment
- +11,8% for an old house
Luxembourg City and surrounding regions most expensive
The average price for one square meter lies at €5,742 for existing apartments and at €6,646 for new apartments. Unsurprisingly, prices are highest in Luxembourg City. Prices decrease the further you stroll away from the capital.
A one-family home will cost you €742,335 on average. This national average is well below the average property price of Luxembourg City, where a family home costs an average price of €1,157,621 - twice as much as similar properties cost in the north of the country.
Paying rent comes at an average of €1,611.
Statec also noted that the number of transactions on the property market is declining.