© Domingos Oliveira/ RTL Luxembourg
According to figures released by the atHome Group on Thursday, the downward trend in Luxembourg's housing market, which began at the start of 2023, appears to have carried into the second quarter. Notably, this decline is affecting every region of the country, signifying bad news for homeowners.
The atHome Group's second quarter report reveals that the price of flats in western Luxembourg has decreased by 14.1%. Houses in the country's center have seen a drop of 13.9%, while in the south, the fall for houses is at 8.4%. Flats in the north also experienced a price drop, falling by 11.9%.
The beginning of 2023 marked the high point for housing prices, said the atHome Group CEO, which now seems to be validated by the figures from both the first and second quarters. An average decline of 5% was observed in the first quarter, which has now risen to 7.3% for flats and remained around 5% for houses.
The reasons behind this trend include the rise in interest rates, which seems to be impacting the typically high demand in Luxembourg's housing market. Certain players in the construction sector have also attributed this to the government reforms announced last October.
However, the atHome Group emphasizes that these are merely trends and the complete data for the second quarter will only be disclosed in early July. It's important to note that their analysis is based on "advertised prices," which may not reflect the final sale price, as it doesn't take into account any subsequent negotiations.
Despite this, property experts suggest that the current climate allows for up to 10% negotiation on the price, as noted by Vincent Quillé in a discussion with RTL Infos earlier this year. This implies that the actual sale prices might be lower than the advertised ones, and thus, the decline in housing prices may be even more significant than what the atHome Group's trends suggest.