Luxembourg’s real estate market has a tendency to get carried away. But just how crazy can it get? The National Housing Observatory has the answers.
Over €17,000 per square metre
While the new-build market is suffering from the consequences of inflation and the war in Ukraine, some people have managed to pull through.
According to figures from the National Housing Observatory, an off-plan flat in Luxembourg City was sold at €17,431 per m2.
This sale took place between April 2021 and March 2022, according to the data relayed by the organisation affiliated to the Housing Department of the Ministry of Small and Medium-Sized Enterprises.
Unfortunately, there is no information on the surface area of the property. But if it were, for example, a 150 m2 flat, the price would exceed €2.6 million.
€58,000 for a parking space
By using a statistical model designed by the National Institute of Statistics and Economic Studies (STATEC) and the National Housing Observatory, it is possible to calculate the average price of a garage.
And the result is astounding: €58,000 for the average garage or indoor parking space. It should be noted that this average corresponds to the period between 2020 and 2021. There is thus a chance that it has changed since then.
Since prices have continued to rise between April 2021 and March 2022, it is likely that this average would have to be revised upwards.
The National Housing Observatory has also managed to determine an average price for outside parking spots (€26,000) and for cellars (€12,000).
In this context, the Observatory stresses that these prices can vary greatly across Luxembourg.
€3,500 per square metre… in Lorentzweiler
While Luxembourg is infamous for its staggering housing prices, it is apparently still possible to find a rare bargain, as it seems to have been the case for one lucky buyer in Lorentzweiler between April 2021 and March 2022.
According to the latest official figures, an existing flat in the municipality of Lorentzweiler was sold for €3,589 per m2.
Neither the surface area nor the condition of the property was disclosed. However, at this price and in this region, there is little chance that the buying party will make a loss.
675 sales in Luxembourg City
Has there been a rush on the market of existing homes in Luxembourg City in recent months? It is difficult to give an affirmative answer, but we do know that 675 existing flats were sold between 1 April 2021 and 31 March 2022.
This is unprecedented in the last ten years. The last time this number of sales was approached in this municipality was in 2018. At that time, 667 existing flats were sold.
These transactions alone account for almost 20% of the transactions on the market of existing homes between April 2021 and March 2022.
Price per square metre now twice as expensive as in 2012
The national average price per m2 has doubled in ten years, at least for existing flats. This is once again according to figures from the National Housing Observatory.
In 2012, the average price per m2 on the existing homes market was €3,999. The latest figures put it at around €8,344. The national average has therefore more than doubled in ten years.
On the new-build market, the average price per m2 has risen from €4,846 to €8,877 between 2012 and the first quarter of 2022. While the national average has not quite doubled, it has still increased considerably.
In 2012, it was still possible to buy a new property in Luxembourg City at €5,789 per m2 (annual average). Those days are now long gone.