Real estate in Luxembourg: The price of are has exploded by 136.5% since 2010
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Real estate in LuxembourgThe price of are has exploded 136.5% since 2010
LUXEMBOURG – If the price of housing has risen sharply in recent years, it is in particular because that of building land has jumped.
Building land prices increased by 8.1% each year between 2010 and 2021.
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In the 2nd quarter of 2022, housing prices increased by 11.5% compared to the 2nd quarter of 2021, Statec said on Thursday. With differentiated differences according to the type of property: the price of old houses jumped by 15.5% when that of apartments climbed “only” by 9% for new apartments and 9.1% for old apartments. While this “constitutes a slight acceleration compared to the previous quarter”, it “remains well below the rates observed in the two previous years”: +13.9% over the whole of 2021 and +14.5% in 2020 against 10.1% in 2019.
Thus, for a house, it was necessary to count on average 1,082,536 euros. A price ranging from simple to double between the North (815,324 euros) and the canton of Luxembourg (1,594,711 euros). Even chosen for apartments: 9,064 euros/m² on average but up to 12,029 euros/m² in the canton of Luxembourg against 6,901 euros/m² in the North.
+16.4% in the canton of Luxembourg
If the construction prices have been stretching for a few months and should change the situation, they have only increased, between 2010 and 2021, by 32.4%, i.e. “+2.6% per year, a figure quite similar to that of l “Inflation on consumer prices”, notes Statec. Until last year, it was therefore “the prices of building land [qui] have played a major role in driving up house prices. They have thus increased by 8.1% each year, i.e. a cumulative increase of 136.5%, a “rise significantly higher than those of the prices of existing housing and under construction”, respectively of 117.4% and 107.4% .
With an impressive acceleration of 12.2% between 2018 and 2019 and even 16.9% between 2019 and 2020 against “only” 10.4% between 2020 and 2021. Statec also notes that for the first time since 2010, the rise in the price of building land, in 2021, was less marked than that of housing prices (+11.9% for new buildings, +14.9% for existing ones).
With, again, geographical results: between 2019 and 2021, the median price of are jumped by 16.4% in the canton of Luxembourg, by 12.8% in that of Esch and by 11.2% in that of Capellen against 4% in that of Wiltz, 5.9% in that of Clervaux and 6% in that of Diekirch.
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