Luxembourg housing prices fall, but not everywhere

The national agency Statec and the Luxembourg Housing Observatory have conducted and published a study on housing costs. The report contains both pleasant figures and disturbing facts.

To the certainly positive should be attributed a quite noticeable reduction in prices for secondary housing. The cost of existing houses decreased by as much as 13.5%. Secondary apartments are a little more modest — they lost 4.5%. Both indicators were calculated on the basis of data for the 2nd quarter of 2022 and 2023.

In the same year, the price of primary housing increased, but not by much. An apartment in a new building costs on average 2.2% more expensive than a year ago. It is worth adding that at the same time, the amount of finances revolving in this category has decreased by 63.5%. This is the result of the construction crisis, about which we have written in our news.

Another factor in the decline of housing costs was the slowdown in the growth of the price of land for construction. The cost of a hectare is still growing from year to year, but the growth rate is significantly lower. Thus, in the period from 2020 to 2021, it added 10.4%, and from 2021 to 2022 — only 5.9%.

Another positive trend is the increase in the number of ads for renting furnished rooms. If in the 10th year, their share was about 3%, then in 2022 — 11.6% of the total number of ads.