atHome.lu presents the main trends in property prices in Luxembourg, published in atHome Magazine Autumn 2020.

Rent: Rental price rises weaken

In September 2020, average rental prices were €1,527 for flats and €2,908 for houses (average rents for all areas).

There have been relatively small price increases over the past 12 months, of 2% for flats and 4% for houses. These increases are less than the average increases observed in previous periods.

In terms of supply on the rental market, 2 and 3 bedroom flats are the most numerous in Luxembourg. They represent ¾ of the ads. Smaller areas such as studios and large flats are rather rare.

Sales: no crisis in sales prices

Today, to acquire a property in the Grand Duchy, the average budget for a house is €1,023,665 and €667,489 for a flat (average prices posted, all surfaces combined). There have been significant increases over the year, with respective increases of 12% and 15%.
It can therefore already be observed that the health crisis and the containment of last spring have not had any impact to date on the surge in prices. Buyers have not cancelled their projects and the still high demand continues to push up property prices.

Prices per square metre are rising at the same rate, reaching 7,516€/m2 on average for flats. Unsurprisingly, in the capital, prices are higher than the national average. Luxembourg City had a price of €9,962/m2 in September 2020.

Finally, it can be noted that the south of the country is now more sought after by future buyers. As prices are much more affordable than in the centre, buyers can find good deals there!

New build: The success of new build property

In Luxembourg, new property is still successful with a strong demand from investors and future owners. The consequence of this success is the strong increase in prices for this type of property. Indeed, the increase recorded over the last 12 months is 18% on average prices. Today, you can expect to pay €788,307 for a new flat.

Logically, prices per square metre are equally high in the country: on average €9,324/m2. It should be noted, however, that 55% of new flats are located in the centre of the country, which tends to pull the average price upwards.

Finally, even if the prices of new buildings are much higher than those of old buildings, investing in new buildings remains a safe bet in Luxembourg. Indeed, the market is very dynamic and should remain so for a long time.

BASIS OF CALCULATION :
The statistics presented above, and in atHome Magazine, are based on the prices displayed in the ads published on atHome.lu between September 2019 and September 2020. The statistical sample consists of more than 49,000 real estate listings.