Particularly in Luxembourg City, the price surge has been remarkable, with the value of existing flats nearly tripling in the past 16 years.
In Luxembourg City, the prices of already constructed flats have experienced a 2.9-fold increase between 2007 and 2022. Similarly, the outskirts have also witnessed substantial growth, with prices rising by a factor of 2.7 in Strassen and 2.6 in Hesperange. The figures compiled by the Housing Observatory reveal a chilling reality for prospective buyers when examined on a per square meter basis:
Here are the average prices per m² recorded each year in the capital and nearby municipalities. You can change town using the drop-down menu and click on each year to see the exact price.
Fortunately, there is some relief in the current year, as 2023 has brought about a downtrend in prices. The Grand Duchy has witnessed several months of price declines, including in the capital, following an approximate 5% correction in the first quarter.
The rise in interest rates is a significant contributing factor to this price reversal, making it increasingly challenging for buyers to secure mortgages. As budgets tighten, fewer buyers are entering the market, compelling property owners to lower prices in order to facilitate sales.
