In Luxembourg, residents are borrowing more and more to invest in property. Real estate remains more than ever a safe bet in the country!
In a context where interest rates remain low, future homeowners do not hesitate to take out a larger real estate loan for the purchase of their house or flat.

Residents borrow more

Between April 2017 and April 2018, the amount borrowed by households in Luxembourg to finance their real estate increased by €2,182 million, or +8.2%, according to the latest report published by the Luxembourg Central Bank.

More globally, over one year, all loans (business loans, consumer loans, etc.) have increased and show an increase of 7,914 million euros, i.e. +9.8%.

Mortgage rates remain low

It seems that buyers are taking advantage of the low interest rates to make their real estate plans a reality.

On average, in March 2018, variable property rates granted to households stood at 1.56 %. They were slightly lower than in February.
Fixed rates, on the other hand, were slightly higher and averaged 1.97% in March 2018 according to the latest release from the Luxembourg Central Bank.