The real estate platform atHome has just published its figures for the second quarter, showing the Luxembourg housing market was more stable.
Given continued strong demand, rent prices continue to rise. Over the past year, prices have increase by 6.6% for houses and 4.2% for apartments.
From one quarter to the next, house rents recorded a clear increase of +13.4%, while the increase was more moderate (+3.3%) for apartment rents, which nevertheless continue to rise in Luxembourg.
Rents vary by region. According to the report, eastern Luxembourg has seen the strongest increase for houses (+9.6%), while the south stands out for apartments (+8.3%).
Conversely, rents are falling for houses in the north (-4.0%) and for apartments in the west (-4.6%). "These differences confirm very different rental trends from one area to another", the atHome report says.
The prices listed in ads for existing houses rose slightly by 2.7% in the second quarter. Prices for existing apartments, on the other hand, fell by 1.4%.
After several quarters of decline, new-build apartments show a very slight increase (+0.1%), reflecting "a relative stability of the market as a whole", says atHome.
Selling prices also vary considerably across regions, with older houses (+0.3%) and older apartments (+1.1%) costing more in the east of the country, while northern Luxembourg has seen a sharp decline for older houses (-5.9%).
Other regions show more contained variations, "confirming that trends remain largely influenced by local realities", according to atHome.
The new report from atHome provided an overview of the real estate market ahead of the government's announcement on 16 July presenting the construction booster package.
These measures, designed to support construction, rental investment, homeownership, and the development of affordable housing, "could help shift market balances in the coming quarters", atHome cautiously suggests.
The next quarterly reports should allow us to measure the effects.
