Real Estate Market trends in Luxembourg
Are you thinking about moving to Luxembourg? If it’s the case, ou need to keep in mind that the real estate prices are relatively high. The main reason behind is a shortage of housing while new developments are not sufficient to meet a growing demand. Besides, the real estate agency Engel & Völkers specifies that the current situation wont reverse in the near future. Indeed, the forecast states a significant population increase combined with a strong economic growth in the following years.
The year 2017 on top
Either for existing or new properties in Luxembourg, the real estate prices have spiked by 4.10% for houses and by 4.70% for apartments. These figures reach 6.10% for properties under construction. The average price for an apartment is 420.000€ and 690.000€ for a villa. The conjoint report from “L’Observatoire de l’Habitat” and the “Statec” (Institut National de la Statistique et des Etudes Economiques) is unequivocal: Investing in the Grand-Duchy remains a safe bet which highly coveted by investors. According to Engel & Völkers Luxembourg real estate specialists, this attractiveness is namely due to the quality of real estate as well as the attractive tax system within the country. Indeed, despite soaring prices, the transaction volume on the whole territory increased by 12% in 2017.
The price per square meter is still rising
Present in 34 countries, Engel & Völkers highlights the fact that Luxembourg attracts a high-end clientele who is looking for a privileged and a secure lifestyle. The average price of an existing apartment is around 5.000€/sqm against more than 6.300€/sqm for new projects representing a gap of approximatively 25%. Note that these new developments are multiplying not only in Luxembourg-city but also around the whole country. Even if the capital is very prized, the Northern part of Grand-Duchy is enjoying a strong demand. Moreover, this rise in prices in the real estate industry is greater in Luxembourg that in the other European countries, which is a proof of the growing interest of customers for this destination.
Localization as a key factor
When it comes to real estate, disparities obviously exist within the country. You can expect significant differences depending on the area you are looking for. The canton of Luxembourg is indeed the most expensive with a price per square meter of 7.800€ for new projects and 6.500€ for existing properties. The average budget to be allocated to acquire a property is above 950.000€ which is the double of the average budget for the North of the country. Precisely in the North, a square meter is negociated around 3.930€. The South remains really covered and therefore more expensive. Average prices range from 4.500 to 5.000€ per square meter.
In order to carry out your relocation in Luxembourg, Engel & Völkers is by your side for all the steps of this project. Through this agency and its consultants, you will benefit from a real expertise as well as a know-how which is the results of more 40 years of experience.