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Luxembourg's real estate market is showing signs of stabilising, particularly in terms of house prices. Although rents continue to soar, apartment sale prices in Luxembourg have continued to drop in the third quarter of 2024, according to the latest report by real estate agency atHome.
It appears that prices are starting to stabilise, particularly for houses. Between July and September, apartment prices fell by 5.3%, while house prices dropped by 2.4% - significantly less than at the start of the year. In eastern Luxembourg, house prices even rose slightly during the same period.
Rents however are continuing to rise by around 5% on average for apartments and 6% for houses, say atHome.
The ad platform is expecting the market to attract new potential buyers over the coming months as a result of the stabilising prices and a drop in interest rates for mortgages. However, they expect the rental market to remain under pressure.
At the end of September, the Housing Observatory noted that house prices were becoming progressively more stable amid increased activity on the housing market. Researcher Julien Licheron told RTL that the government measures to increase investment were still valid.
The Chamber of Commerce said that very few new buildings (VEFA, or "sale in future state of completion") are currently being purchased, which is why the government needs to raise awareness of the measures available. The finance minister's announcement of reduced registration fees on Wednesday was welcomed by the Chamber, although they added they would like the government to purchase more VEFA properties on the private market, particularly smaller projects.
