Moving house was not in the plans of most people during the initial stages of the health crisis. But later on, some families with parents who have begun to work from home more often have been more inclined to move to a bigger place. Photo: Mike Zenari

Moving house was not in the plans of most people during the initial stages of the health crisis. But later on, some families with parents who have begun to work from home more often have been more inclined to move to a bigger place.  Photo: Mike Zenari

The prices of homes in Luxembourg have increased by 28.7% from the first quarter of 2020 to the third quarter of 2021, stated housing minister Henri Kox (Déi Gréng).

Compiled of data from notarial deeds, the figures referenced by Kox in an answer to a parliamentary question indicate that the housing crisis has continued to worsen during the pandemic. Moving house was not in the plans of most people during the initial stages of the health crisis. But now, some individuals with parents who have begun to work from home more often have been inclined to move to a bigger place.

The 28.7% increase in the prices of accommodation cited by Kox are limited to the sale of existing single-family homes. There is currently no available data on newly built houses as well as apartments sold ahead of their completion.

From the first quarter of 2018 to the third quarter of 2021 the cumulated increase of home prices was 48% on average, indicated Kox in his response. This includes existing housing and newly built accommodations. The price of existing houses has gone up by 53.6%, existing apartment have seen an increase of 56% and apartment under construction—37.9%.

In a recently released report, the Idea foundation--created by the chamber of commerce in 2014—stated that Luxembourg’s housing woes date from the 20th century and shouldn’t be regarded as an entirely recent phenomenon. The steel industry crisis in the 1970s and an increase of investment in the 1980s leading to a surge in real estate prices were put forward in the think tank’s document as examples of Luxembourg’s long-standing housing problems. It called on the government to rethink its subsidies scheme and to be wary of building for the sake of building.