The Luxembourg Housing Observatory published its latest study on housing in Luxembourg on Wednesday. Pierre Clément, the CEO of Nexvia, has provided RTL with analysis of the figures.
The rise in property prices is no surprise, with the largest price increase in the last decade recorded in 2019 at 11%. Clément explained in certain municipalities such as Bertrange and Strassen, increases of up to 14% had been recorded.
The price per square metre of an existing apartment in the Luxembourg capital has also risen from 6,636 to 9,029 euros in three years, an increase of 36.5%.
The accelerated increase in housing prices has been observed at Nexvia, as elsewhere. Clément ascribes the increase to what he called an explosion in the price of land, which has impacted existing dwellings. Both of these have been fuelled by the increasing demand for real estate. However, it must be said these figures are no longer necessarily representative of the current situation, as the ongoing health crisis has halted most activities within the real estate sector.
Further consequences of the coronavirus crisis on Luxembourg's housing market remain to be seen.
