We often talk about the very high real estate prices of Luxembourg’s capital. But how is the situation of our neighbouring countries’ capitals?

A recent study carried out in France by the Century 21 agency has revealed that the price per square meter of the French capital is currently close to €9,000, a 45% increase since 2009, according to the real estate group. As in Luxembourg, residents are responding by buying smaller dwellings, cutting a few square meters in order to lighten their bill.

By way of comparison, the average price per square meter in Berlin is around €4,500, and ranges from €4,000 to €5,800. Some of Germany’s larger cities actually have higher prices, such as Frankfurt, where the average price per square meter is of around €5,350, or Dusseldorf, where it is around €5,800.

In Brussels, the average price per square meter is around €3,250, ranging between €2,600 to €3,800. It is in Ghent, in the north of the country, that the average price per square meter seems to be the highest, at approximately €3,700.

In Luxembourg, statistics differ between house and apartment purchases. For an apartment, the average price per square meter announced by the Observatoire de l’Habitat was of €7,730 in 2016, and of €6,100 for a house.

Real estate prices often raise the issue of the cost of living and of wages. For Luxembourg-Ville and Paris, many workers and employees have taken advantage of the very low credit rates to purchase property. However, it remains clear that it is senior managers who can afford the biggest and finest housing.

Thus, even if the cost of living remains high in these two cities, we should not forget the numerous state aids available in the Grand Duchy, as well as an almost non-existent real estate tax when compared to that levied on French property owners.


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