As it does every year, atHome.lu draws up its report on the Luxembourg property market.

Based on the prices posted on the website, these statistics reveal the trends in the sales and rental market, the evolution of prices by region, and by neighbourhood for Luxembourg City.

These figures are compiled in atHome Magazine. In the March 2015 edition, which has just been published, the initial findings are as follows:

Rental: Sustained growth in rentals

It costs an average of €1,300 to rent a flat in Luxembourg (+7% over 12 months), all surfaces included. Studios and two-bedroom flats have seen the strongest increases with +7% and +6% respectively over one year. The variations in posted rents are directly linked to sales prices, which continue to rise. Houses are increasing on the same trend (+5% over 12 months), even though houses for rent only represent 11% of the ads on atHome.lu.

Sale : Towards an investor market?

Older properties are a wise investment if we take into account the year-on-year increases of 5.83% for flats and 5.38% for houses on sale. The Grand Duchy remains attractive and the demand for housing remains higher than the supply, the strongly increasing audiences of the atHome.lu website illustrate perfectly this demand or at least the interest for the real estate market. It is now necessary to count on average 386.225€ for a flat and 673.072€ for a house. These figures must of course be weighed against the strong regional disparities.

New build: Impact of VAT change on new build

The change in VAT on new properties on 1 January 2015 seems to have had a strong impact on prices over the last 6 months. All types of flats, from studios to 4-bedroom properties, are experiencing an increase. Overall, the increase posted is 7.43% over 6 months, which corresponds to an average price of €498,954 for a new flat in Luxembourg. However, these figures should be taken with great caution, we can assume that more new properties have been published on atHome.lu in view of this change in taxation, which may cause the averages to fluctuate.

atHome Magazine March 2015 is currently available in the Kiosk and from your local estate agent.