Property prices continue to rise in Luxembourg
For small budgets, renting or buying a property in Luxembourg proves more and more complicated. The rise in property prices in Luxembourg has been a regular phenomenon in recent years. Find out which types of goods are most affected by this price increase.
What types of goods are most affected by this price increase?
The explosion of housing prices in Luxembourg has been going on for several years. In question: the strong demographic and migratory pressure. Rising prices concern both renting and selling property. According to Essentiel.lu, real estate sales prices increased by 5.4% between 2014 and 2015. The Habitat Observatory is advancing by 16% for renting a house and 6.4% for renting an apartment between 2014 and 2015. This increase only concerns dwellings in old buildings. For new dwellings, there is an opposite trend with a 4% decrease compared to the previous year.
Thus, in 2016, a new property costs on average 479 181 euros. The price of a house tends to stabilize with a 1% increase only over the past year. For the purchase of a house , plan an average of 678,769 euros. This stabilization concerns only smaller houses. Large supermarkets (4 or more rooms) escape this trend and suffer an increase of 3%. It is the small studio-type housing that holds the palm with a rise of 5% in 6 months only. Currently, the average selling price is around 4941 euros per square meter. In Luxembourg, the price of housing under construction is 22% higher than that of an existing property.
In terms of rentals, there is also a rise in prices of around 4%. This increase mainly affects large-area apartments with three or more bedrooms. Smaller goods see their prices stabilize. It takes an average of 1352 euros or 17.85 euros per square meter for a two-bedroom apartment . The studios are renting around 928 euros. Renting an old house starts at 1469 euros (two bedrooms) and can reach 2199 euros (three bedrooms).
Great disparity by region
Unsurprisingly, property prices are inextricably linked to their geographic position. The most expensive goods are located in Luxembourg City and its surroundings. According to Essentiel.lu, it costs 5705 euros per square meter for an apartment against 3992 euros per square meter in Esch-sur-Alzette, in the southern region. According to the same newspaper, a house in the city center sells for about 825,015 euros against 481,128 euros in Esch-sur-Alzette and 403,553 euros in the north of the country. In January 2016, the Observatoire de l'Habitat recorded the variations in selling prices of houses and apartments in Luxembourg according to the regions. Established in 2003 on the initiative of the Ministry of Housing, the Habitat Observatory aims to provide a status report on housing in Luxembourg. This agency centralizes the data and analyzes it before periodically distributing it.
This study shows a great variability according to the regions. In the central region, the average selling price of a house has increased by 4.5%. In terms of the sale price of apartments, there is a great disparity between the northern region and the south central region, with an increase of 15% and 6.3%, respectively. The cheapest apartments are in the south of the country (+ 1.7%) . On their own, they represent 40% of the shares in the sale of apartments in Luxembourg. Houses do not follow this trend (+ 6.3%). In the north, the average selling price of an apartment has increased by 6.9%. To buy a house, it is better to choose East (+ 2.7%) or West of Luxembourg (+ 3.1%).