2023-07-06 17:26:48
The trend continues
According to figures published by the specialized real estate portal atHome.lu, prices have fallen by an average of 7.5% compared to the same period in 2022.
The trend started at the beginning of the year and is continuing. Real estate prices continued to fall in the second quarter, according to data provided by two real estate agencies. At the same time, rental prices are skyrocketing, another sign that high mortgage interest rates are deterring potential buyers from buying a property.
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According to figures from atHome, which confirms its first estimates from the beginning of June, the prices of houses and apartments have fallen by 7.5% compared to the same period in 2022. In contrast, average rental prices have jumped 11.5% in 2023.
The biggest drop was recorded in residential buildings in the capital and the center of the country. Homes were sold 12.6% cheaper than the previous year. Apartments held up a little better, but also changed hands for an average price that was 5.3% lower. The price per square meter of 9,880 euros, however, remains by far the highest.
As far as apartments are concerned, the biggest drop in prices was observed in the west of the country. In this region, apartments changed hands for 13.7% less on average. Homes sold for 8.8% less. It was in the east of the country that prices were the most stable, with drops of only 4.5% for apartments and 5.1% for houses.
A separate set of data released Wednesday by real estate agency Immotop also showed a slowdown in prices over the past year. The average cost of a property per square meter in Luxembourg was €8,700 in the second quarter, compared to €8,870 a year ago.
The capital – which is considered a separate area in Immotop data – was the only region to see an increase in prices, with the average price of a property rising to €12,475 per square meter in the second quarter, compared to €12,406 a year earlier.
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With the rise in interest rates, a number of buyers are forced to postpone their construction project. More and more people are therefore turning to the rental market. This is not without consequence, since it is causing rents to explode, which increased by an average of 11.2% last year, and even 13.4% for houses. It was in the East that the increase was the strongest: according to atHome.lu, tenants had to pay 19.8% more to rent a house. The average rent in the central region, which includes Luxembourg City, is now €2,179, according to data from the real estate agency.
The Immotop.lu portal also published new figures on the Luxembourg real estate market on Tuesday. It can be seen that the energy class of a property has an increasing impact on the selling price. Thus, energy class A houses sell for an average of 9,621 euros per square meter, those of energy class G, 7,470 euros.
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