The highly sought-after Centre region of Luxembourg continues to attract buyers despite ever-increasing prices. It attracts the most loan applications at atHomeFinance, with an average loan application of €729,096 to become a homeowner.

atHomeFinance mortgage broker in Luxembourg presents the average loan to buy in central Luxembourg in 2020.

The health crisis and the COVID-19 containment surprised but did not discourage buyers from carrying out their property projects. Buyers aged on average between 30 and 39 borrowed €729,096 for a project worth €839,369 in the centre of the country.

Who buys in the centre of Luxembourg?

Many residents now fear that the property market, particularly in the centre, is no longer accessible. However, there are still plenty of would-be buyers, and "high prices" do not mean "impossible loans". Who are the borrowers?

In 2020, to realise their real estate project in the centre of Luxembourg, The average loan application from the prospective buyers was €729,096. They had an average deposit of 102 770€ for a total project amount of 839 369€.. Half of them have a 30-year loan term, 23% have a 25-year loan term and 9% have a 20-year loan term.

For this life project, The majority of buyers earn between €3,000 and €3,500, are aged between 30 and 39 and are married. In detail, half of the borrowers are aged between 30 and 39, 23% are aged between 40 and 49 and 20% are aged between 20 and 29.
They are mostly married, at 46%, but singles still represent 20% of borrowers.
To buy a property in the centre of Luxembourg, 27% of borrowers have incomes ranging from €2,000 to €3,000, 26% earn on average between €3,000 and €4,000, 17% have more comfortable incomes ranging from €4,000 to €5,000.

The flat is better than the house

Despite a price increase of 15% for all types of property, the central region of Luxembourg is in high demand. The posted prices do not seem to stop buyers. Indeed, according to our latest statistics, the average price for a flat is €830,789 and for a house €1,456,639.
In this region, 68% borrowers chose a flat rather than a house. Prices may partly explain this choice. However, the majority of the real estate on offer in this part of the Grand Duchy consists of this type of property.
Moreover, for 93% of buyers the property loan will finance a main residence. Among them, 64% chose an old property while 34% financed a new property (construction or vefa).

Methodology: Averages calculated on the basis of loan applications received by atHomeFinance between September 2019 and September 2020 for real estate projects located in the Central region of Luxembourg.
NB: The Central region of Luxembourg includes the canton of Luxembourg as well as that of Mersch.
*Source: average prices posted on atHome.lu between September 2019 and September 2020.