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Real estate market adjustment in Luxembourg: significant price decline in the second quarter
The Luxembourg real estate market is going through a period of correction, with property prices plummeting in the second quarter, according to atHome.lu. Faced with a significant increase in interest rates, potential buyers' borrowing capacity has been reduced by almost a third in the past year. As a result, the demand for real estate has decreased, leading many homeowners to lower their property prices to secure sales. This is the explanation provided by atHome.lu for the significant drop in real estate prices observed in the second quarter.
This downward trend, initiated in the first quarter, intensified in the second quarter, according to atHome.lu's data. After a period of almost continuous growth, house prices decreased by 5.2% in the first three months of the year, and this decline further deepened to 5.5% since April. Apartment prices experienced a steeper fall, going from -5% in the first quarter to -7.3% in the second.
The magnitude of this decline in property prices varies across regions in the country. For example, in the West, where the average property value is €1,009,387, apartment prices fell by 14.1%, while house prices decreased by 5.6%. In the Center, where the average transaction value is €1,041,650, house prices experienced a drastic drop of -13.9%, while the decline was more moderate for apartments (-4.2%).
The South represents the most affordable region for purchasing a home, with an average price of €751,479, recording a decline of 5.8% for apartments and 8.4% for houses. The North, where the average property price is €771,803, saw decreases of -11.9% for apartments and -6.7% for houses.
However, the East, where the price decline was less pronounced (-5% for apartments, -1.8% for houses), has now become the most expensive region in the country, surpassing the Center, with an average property price of €1,043,955. This represents a minimal increase of €2,000 compared to the Center, where prices decreased by 4.2% for apartments and 13.9% for houses.
Au Luxembourg: Les prix de l'immobilier s'effondrent, l'Est devient la région la plus chère - L'essentiel (lessentiel.lu)