Athome’s data is based on the prices of houses and apartments that posted on it Matic Zorman/archives

Athome’s data is based on the prices of houses and apartments that posted on it Matic Zorman/archives

Between March 2020 and March 2021, the average increase in property prices was 5.2% in the capital and its surrounding area, half that of other regions of the country, the real estate portal reported on Thursday.

The website’s data is based on the prices of houses and apartments that posted on it, while the Statec and the Housing Observatory, which announced earlier this month a record growth of 14.5% in housing prices between December 2019 and December 2020, are based on recorded transactions.

An effect of containment and telecommuting?

The website also notes historic decreases for the centre region, between October 2020 and March 2021, in the price of houses for sale (-2.6%) and apartments (-2.1%).

Ditto on the rental front, with a drop, all regions combined, of 5% in posted rents for houses in six months, and of 1% for apartments. This movement probably reflects the rent freeze introduced in the wake of the covid-19 pandemic. The website mentions the importance of the available offers, which can explain the decreases observed in certain districts of the capital, such as Dommeldange, Hollerich, Merl, Clausen, and the Rollingergrund.

A glance at the sales price of new apartments tends to highlight the existing pressure on the land market: it is up by 15% over one year.

“With 42.97% of new projects located in the capital, the centre region is likely to remain the most expensive region in the country in the coming years,” the real estate site said in a statement.

The latter surveyed a hundred members of its community, 61% of whom expressed a desire to move out of the city since the pandemic. The peripheral regions seem to be the winners, while the use of remote working has eased the worries of mobility for some employees.

But it is clear that property prices are still higher in the grand duchy than in neighbouring countries, where Athome observes an upward trend in prices, but with variable geometry.

The contrast is clear between the national average and the valuations posted in certain border towns, such as in Zoufftgen, where a house costs on average €424,217, i.e., 38% more than the average €306,915 in France. The same is true in Martelange, on the Belgian side, with an average price of €491,000--50% above the national average of €326,580.

This article was originally published in French on Paperjam.lu. It has been translated and edited for Delano.