According to Pierre Clément, CEO of Nexvia, “there will be no collapse” in 2023 if the real estate market continues to tighten. This forecast is further confirmed by Soufiane Saadi, CEO of atHome Group, and Julien Licheron, researcher at Liser. However, Luxembourg is likely to face new major problems in the coming months.
In the third quarter of 2022, the market for new houses saw a drop in prices in three regions (out of five) of the country. “The situation has not improved since then,” confirms Soufiane Saadi, CEO of the atHome Group.
He also tells us that according to a survey conducted by atHome, 63% of the respondents expect prices to fall in 2023. This is a scenario that seems increasingly likely, given a low point in activity and a significant decline in sales.
Julien Licheron also draws attention to an issue that is not necessarily always taken into account: Luxembourg’s construction capacity for next year. According to the researcher, “the crisis we are going through will further penalize the construction effort, which was already insufficient before”.
“The risk is that the housing deficit we will have in 2023 will have consequences in 2024,” he says, which in turn could lead to a new rise in prices in 2024. In order to avoid this scenario, Luxembourg must “change the market dynamics” he explains.
“We still manage to have transactions” reassures Pierre Clément, CEO of the Nexvia agency. “In the long run, it becomes much more difficult”, he admits. How long can prices continue to drop down?
If you understand French, you can listen to the interview in the newest episode of “La Bulle Immo” (FR) by clicking below.
Pierre Clément, Soufiane Saadi et Julien Licheron évoquent les perspectives de marché pour l’année 2023.
You can also listen to the podcast on RTL Play, Apple Podcast and Spotify.
