Property prices in Luxembourg significantly affect the entire border region, as highlighted in a recent report by the Housing Observatory. The publication compares housing costs in Luxembourg with those in its three neighbouring countries: Belgium, France, and Germany.
According to the report, Luxembourg has the highest housing prices in the Greater Region, particularly in the capital and surrounding municipalities, where prices can exceed €10,000 per square metre. In contrast, prices decrease as one moves further from Luxembourg City, with areas like Wiltz and Echternach averaging around €5,600 per square metre.
In France, property prices are notably lower, with the average cost for a flat in Lorraine at €1,794 per square metre. However, at the Luxembourg border, prices can exceed €3,000 per square metre.
Similarly, property prices in Belgium’s province of Luxembourg are higher than the national average. In Germany, some towns along the Moselle River, such as Palzem and Perl, also report prices above the regional average.
Despite recent declines, the Housing Observatory notes that the Luxembourg property market remains under pressure. This situation may cause “tensions” in the border region, where residents and newcomers increasingly struggle to find suitable accommodation.
Between 2012 and 2020, Luxembourg experienced the most substantial population growth among the four countries analysed, with the number of households increasing by over 28%. In comparison, household growth was nearly 10% in France, 6.8% in Belgium, and just 1.3% in Germany. Meanwhile, household size has remained relatively stable in recent years.
