Expectations for the Luxembourg residential real estate market in 2019
The Luxembourg residential real estate market still seems to have a bright future ahead of it. The real estate experts Engel & Völkers, share with Just Arrived the main trends to be expected for the year 2019.
Brexit supports real estate prices
According to the real estate experts Engel & Volkers, residential real estate should experience another 5% price increase this year.
Indeed, as a result of Brexit and the arrival of foreign workers on the Luxembourg market, the existing gap between the supply and demand for housing should continue to increase. And despite the many projects underway, the future supply of new housing does not keep pace with this population growth. In order to meet the needs of the expected influx of population, the forecast for new projects should at least double.
The most reliable values in terms of localization
As for the rest of the country, the south is accelerating its development. To the west, the municipality of Steinfort is expanding further. Investments in infrastructure projects should give this municipality a new appeal relatively quickly.
The North of the country should also benefit from renewed interest due to the development of road transport networks. Prices remain more affordable, although the price increase observed in 2018 is expected to intensify. The municipalities of Ettelbruck, Diekirch and Wiltz are the most dynamic today.
The impact of free public transport
Properties located near public transport networks under development should see their value increase significantly, especially given the free transport announced for 2020.
All the signals therefore argue in favour of real estate investment in the Grand Duchy of Luxembourg.