Luxembourg property prices drop 10.9% year-on-year as market activity remains low

This conclusion comes from a new report published by the Housing Observatory on Wednesday. The report's graphs indicate that 2023 may have been the low point in market activity, with a slight recovery observed since the start of this year. This upturn in the first quarter is reflected in the increased sales of plots of land and already-built flats. However, the Housing Observatory notes that the drop in activity is most pronounced in the market for flats still under construction.

Interestingly, prices for flats under construction have decreased the least. This is likely because fewer sales were made below the asking price for these properties, compared to those for existing flats and houses.

Overall, property prices have fallen by 10.9% over the past year. In contrast, rental prices have almost continuously increased in recent years, reaching an all-time high after the first quarter of this year.