atHomeMagazine, the magazine of property prices in Luxembourg, has just been published.

Here are the main findings of the study:

Steady growth in existing properties                   

Demand for existing properties continues unabated, with year-on-year increases of 3.4% for flats and 3.1% for houses for sale. These figures can be correlated with the constant immigration to Luxembourg, which is contributing to this growth. The average price for a flat is now €362,395, while the average price for a house is €651,040. These figures must, of course, be weighed against the wide regional disparities.                 

Stable prices in new buildings                           

The new-build sector is in very good health. All types of flat, from studios to 4-bedroom properties, have seen an increase over the past twelve months. Overall, the increase was 0.7% over the same period, corresponding to an average price of €438,850 for a new flat in Luxembourg. The price per square metre now stands at €4,973 (+5% in one year).                                                       

Renting benefits houses                             

It costs an average of €1,213 to rent a flat in Luxembourg, across all sizes. Small apartments (studios and one-bedroom flats) are still the big winners, with rents up by 4.5% and 3.5% respectively over one year. Houses rose by 2.9%, but this increase was mainly concentrated on very large properties, which are subject to greater fluctuations depending on the number of exceptional properties coming onto the market. 

Prices in the regions:

NORTH                                                                                                                

The large rural areas are benefiting from the establishment of houses in the region, and advertised prices have risen by 4.6% over the last 12 months. The vast majority of properties advertised are houses for sale. The average advertised value of a house in the Nord, at €444,371, is in line with the average price of a flat in the centre. Flat prices are stable (+0.21TP3Q) at €293,458.

WEST                 

With growth of 0.3%, the market for existing flats in the west of France is stabilising, but remains at very high levels. The market share in this region is only 6% nationally, making it the smallest region in terms of property supply. The West also has 66% of houses, and seems to attract couples or families with children. Smaller 2-bedroom houses, although low in terms of ad volumes, play an active role in the average growth of 3.7% for houses in the West.        

CENTRE                                                                             

With smaller surface areas and less land available, property activity is logically concentrated on flats, with demand underpinning the market and driving growth of 5.1% in average advertised prices. One- to three-bedroom flats recorded the strongest year-on-year increases. All categories of older house are seeing an increase in the central region, with an average price of over €900,000. Smaller homes, such as 2- and 3-bedroom houses, are up by more than 4%                                         

EAST                                       

Average advertised prices for flats have risen again over the past year, to €334,594. This represents an increase of 4.1% over 24 months. 1 and 2 bedroom flats have seen the most pronounced increases. The situation seems to have stabilised for houses over the last 12 months, with an average price of €601,463. However, the number of properties coming onto the market is relatively low on a national scale. Over 24 months, we can see that houses with between 2 and 4 bedrooms have seen the biggest increases. 

SUD                      

The South concentrates 44% of the supply of flats for sale, but this supply meets a real demand. The increase in average prices reflects this need, with growth of 2.7% and an average price of €310,658. The south remains an attractive alternative to the central region, with prices within 85% of the national average. Houses that can accommodate families with several children are very popular in the south. An average of €547,294 is now needed to purchase this type of property. 65% of these houses have 3 and 4 bedrooms, and are seeing the strongest increases.                     

Find all the details of the study in atHome Magazine, available in the Kiosk and from your estate agent.