Real estate agency atHome's latest figures reveal a dynamic shift in Luxembourg's property market: a 7% decline in sales prices juxtaposed with an 8.5% increase in rental rates, signaling a complex landscape as the nation heads into a transitional 2024.
Following the stark real estate price hike of 2022, sales prices this year recorded an average decrease of 7%. At the same time, however, rental rates on average went up by 8.5% across the Grand Duchy. In southern Luxembourg, apartment rents even reached +11%.
In the centre of the Grand Duchy, the average rent is currently set at €2,139 per month.
While the rise in rents coincided with the uptick in interest rates, the tendency slowed down toward the end of 2023.
According to atHome, 2024 is poised to become a transition year that will see interest rates going down once again. The tax reforms by the new administration are expected to further improve the situation ahead of an anticipated recovery in 2025.
