Demand, offer and prices of housing are still increasing in the grand duchy according to the figures of the real estate platform Immotop.lu
Photo: Jan Hanrion/archives
The covid-19 crisis has not slowed down the rise of real estate prices according to Immotop.lu. The real estate platform announced a 11.2% price increase for houses and 14.6% for apartments.
Coronavirus crisis or not, the real estate prices do not stop increasing in the Grand Duchy. “The health crisis seems to have accelerated the increase in prices, especially for houses for sale,” said Immotop.lu in a statement.
According to figures from the Luxembourg real estate portal, the median price of a house has increased by 11.2% between the first and second quarter of 2020, reaching €1.183 million. For apartments, the increase is smaller: +9.4%, to reach €769,000.
More precisely, the median price per square metre is €6,650 for a house (+22.6% in one year and +13.7% in three quarters) and €10,210 for an apartment (+12.6% in one year and +9.5% in three quarters).
More than 7 requests for a house
The increase in supply was therefore not enough to curb the increase in prices. The portal noted a 35% increase in the number of adverts for houses between Q1 and Q3 (despite a drop in Q2) and a 14.6% increase for apartments. In total, 2,962 houses and 5,242 apartments were for sale on the site in the third quarter of 2020.
“It is very likely that the delay in the decision making of the sellers has caused this accumulation from the offer side”, a platform spokesperson said.
On average, a house advert generated 7.25 requests in the third quarter of 2020, compared to 3.22 for apartments. The most sought-after municipalities are still concentrated between the centre and the south.
Less important than sales on the site were rentals, which remain stable. In the third quarter, the platform had 268 houses for rent with a median rent of €1,550 and 3,468 apartments with a median rent of €2,850.
This article was originally published in French on Paperjam.lu