This dynamic nature of property prices underscores the evolving market and creates a landscape that presents challenges and opportunities for both buyers and tenants, according to data recently released by the real estate portal Immotop.
On the sales front, prices have been in decline.
In June 2023, the average asking price for residential properties was €8,573 per square metre, indicating a 6.2% decrease compared to June 2022 when prices stood at €9,143/m2.
Over the past two years, the market reached its peak in July 2022 with an average price per square metre of €9,208.
However, prices have gradually decreased since then, reaching their lowest point in December 2022 at €8,485 per square metre.
Despite the decline, it’s important to note that housing and apartment prices remain high and overvalued, surpassing general wage growth and inflation over the years, with June 2023 prices still showing an 88% increase compared to June 2015.
Nevertheless, the price pressure might provide opportunities for potential buyers to negotiate more favourable prices.
Rental prices continue to rise
In contrast, rental prices in Luxembourg continue to rise.
In June 2023, the average monthly asking price for residential properties was €24.79/m2, representing a 6.4% increase compared to June 2022 when prices were €23.30/m2.
This upward trend indicates a growing demand for rental properties, potentially driven by factors such as population growth and a highly mobile workforce.
Notably, June 2023 marked the highest average rental price in the past two years, peaking at €24.79/m2. As a result, tenants may face challenges in finding affordable rental options.
The lowest rental prices were recorded in February 2022, with an average of €23.27/m2. However, prices have steadily increased since then, indicating a competitive rental market.
In summary, the divergent trends in Luxembourg’s real estate market create a mixed landscape for buyers and tenants.
There are potential opportunities for those seeking to purchase properties at lower prices but at higher interest rates, while challenges arise for those in search of affordable rental options.
The price development according to Immotop is available here.