Real estate statistics - 1st half of 2021 vs. 1st half of 2020

Immotop.lu publishes the figures of its study on the evolution of real estate prices advertised on its real estate ads site between the 1st half of 2020 and the 1st half of 2021. This study is based on the ads published on Immotop.lu before negotiation. The advertised prices are the median prices determined from residential ads for houses and apartments, old and new combined, intended for sale.

Prices on the rise:

What is the median cost of a home in Luxembourg in the first half of 2021? The answer is €842,000 or €6,137/sqm versus €807,746 in the 1st half of 2020 or €5,492/sqm. The advertised price per m2 of housing (houses and apartments) on the national territory has therefore increased in one year by +4.24% and by +11.74% in terms of price/m2.

A less developed supply:

The number of offers available on the market is also falling, to the tune of -31.37% compared to last year, which was already recording a decline in the number of properties put up for sale. There is a regression of -32.02% in the number of offers for houses and -31.00% for apartments. Luxembourg City is experiencing this same trend, recording -10.83% of available for-sale listings for houses and up to -42.35% fewer offers for apartments.

The lack of available housing in Luxembourg, although a major issue for the country, is therefore likely to stagnate for some time to come; consequences of a forced halt in construction during the Covid period in the first half of 2020 as well as the shortage of building materials that Luxembourg is facing. Not to mention the still untapped building land.

A heterogeneous development:

The purchase of a house in Luxembourg all municipalities combined now costs €1,020,000, i.e. €5,465/sqm while a house located in Luxembourg City reaches €1,557,500, i.e. €9,023/sqm. In the 1st half of 2020, the price of a house located in Luxembourg was €945,000, or €5,064/sqm and €1,577,265, or €8,952.57/sqm for those located in the capital. The median price per sqm of a house has therefore increased by +7.92% across the board, compared to "only" +0.79% in Luxembourg City.

The acquisition of an apartment in Luxembourg all municipalities combined represents to date €642,900, or €7,145/sqm. To be lucky enough to own an apartment in Luxembourg City, however, you will need to spend €860,000, or €11,626/sqm. In the 1st half of 2020, the price of an apartment located in Luxembourg was €575,000, or €5,961.54/sqm and €785,000 or €11,458.33/sqm for apartments located in Luxembourg City. The median price per m2 of an apartment has therefore increased by +19.85% across the country and by +1.46% on a capital city scale.

Luxembourg City is therefore globally spared from a price surge with a timid increase in price per m2.

Variations in the price/sqm of housing on Luxembourg territory:

Many factors can explain the drastic and sudden increase in the price per sqm in certain areas of the country.

The establishment of new housing units (new construction), certain businesses or activities with a strong potential for attractiveness may contribute to the rapid growth of the value of a market. This hypothesis can be considered particularly for the municipality of Mondorf-les-Bains, which hosts a spa and a casino among other highlights.

The construction of new buildings with more facilities (concierge, gym, daycare, etc.) and better energy services may also be the source of greater interest in acquiring a home in these communes. The landscaping and infrastructure offered by the communes also play a crucial role in the development and attractiveness of certain neighborhoods.

The various lockdowns will also certainly have played an important role in the new housing expectations of residents.

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If you are looking for a house for sale, an apartment for sale, a house for rent or an apartment for rent, visit Immotop.lu.