© Maxime Gonzales/ RTL Luxembourg
The persistent downward trend in property prices shows no signs of stopping any time soon, affecting every region of Luxembourg and encompassing all segments of the market, including flats, houses, and both new and existing properties.
Following the Housing Observatory's analysis, the atHome group has released its latest price trends report for the third quarter of 2023. The findings align with the previous quarter, indicating price declines across the entire country, with an average decrease of 8.3%. Notably, existing properties experience a more pronounced drop at 9.3%.
For new properties, the national average decline is 7.2%, though regional variations are noteworthy. For instance, the northern region has seen a substantial drop in house prices at 13.4%. Flat prices have also decreased significantly in the east (-12.6%), north (-12%), and west (-9.7%). These figures confirm that properties in the north of the country have seen their value fall in recent months.
These price adjustments are a logical consequence of increasing interest rates, and there is little indication that the trend will reverse anytime soon. The European Central Bank's decision to raise rates in mid-September suggests that the downward trajectory observed in recent months is likely to persist through the remainder of the year.
However, there is some positive news on the rental front. While rental rates continue to rise, the atHome group reports a more moderate increase of 5.9% compared to previous quarters. This moderation may hint at the possibility of rental rates stabilising in the coming months.
