The real estate group ‘atHome’ has analysed the latest trends on the Luxembourg real estate market in the first quarter of 2022. Interest rates are showing a clear trend.
Since January, interest rates on real estate loans have been on the rise. The war in Ukraine is said to have exacerbated this trend. Interest rates went from 1.4% to 1.8% at the start of the year, before increasing to 2.8% in April. Fixed rates would be at an all-time high for the first time in five years. In contrast, the variable rate would remain at 1.4%.
House prices are increasing at a slower pace. They have only increased by 3% in the last six months, compared to 5.8% in the preceding six months. This is true for the entire country, however there are regional variations. Prices are rising more slowly in the north and east, in particular.
At the same time, construction costs have risen, and quite substantially: between 15 and 20%, estimates the construction company Thomas & Piron in the report.
