You’ve probably been renting during this time and have just calculated how much money you have parted with for a house or a flat that you are never going to own. You have just survived Luxembourg property shock number one.

You decide to stop “wasting” money. It is time set down roots and buy your own home in Luxembourg. You start looking at property websites and small ads in the local press. Enter shock number two, property prices in Luxembourg. 

Once your breathing has calmed and you start thinking clearly again, you realise that you do not even know where to start. This is where we would like to help. 

This week Delano plans to take a look at the process of buying a home in the grand duchy and, via interviews with local experts, as well as people who have already purchased property in Luxembourg, provide you with insider tips. We can’t change property prices, but hope to assist you in avoiding some of the pitfalls that can be costly and lead to disappointment.

In a recent interview with Delano, Stéphane Compain of the relocation company LuxRelo gave a very important piece of advice to anyone looking for property in Luxembourg--manage your expectations. He suggests that people try to have a realistic view of the Luxembourg property market:

“We have found lack of knowledge of Luxembourg to be a huge problem that leads to unrealistic expectations…. (people) need to know that property in Luxembourg moves very quickly, often going on the market and being sold or rented in as little as 24 hours.”

However, if you are prepared to compromise on price, location and size, Compain believes there is always a solution. “Perhaps not the brand new, high-end apartment they have been dreaming of, but why not an older property that has been renovated to a good standard?”

A good place to start is the government portal, which provides useful contacts and addresses. It suggests that, “Buying a home is a step calling for mature reflection.”

Join Delano this week to learn the best way to get your key in the door.

Housing market

Current property prices in Luxembourg (as reported in Delano 11 April 2018):

Property prices have continued to rise, with the last 12 months showing an average 3% increase in apartment prices and 5% for houses. Buyers could expect to pay €5,137 per square metre for an existing apartment in Luxembourg in spring 2018, or €4,000/m2 for a house. Average prices for new-build apartments rose 4% to €6,307/m2.

Average prices at the beginning of 2018:

• €434,701 to buy an existing apartment;
• €530,437 to buy a new-build apartment;
• €729,516 to buy a house.

Source: atHome.lu