The Banque Internationale à Luxembourg’s latest BIL IMMO Index has shown that prices on the housing market continue to rise.
Published on 12 December 2016, the latest BIL IMMO Index, drafted in partnership with PwC Luxembourg, has revealed that the housing prices are still on the rise in the second quarter of 2016.
The index, which gauges the housing market, reached +1.44 in the second quarter of 2016, compared to +0.93 at the end of 2015. This change shows a clear increase in the national housing market since the start of the year.
Explanations which have been put forward for this rise include further price rises, a sustained increase in homebuilding, and an increased volume of lending.
Marcel Leyers, the Chief of Corporate and Institutional Banking at BIL said stated that: "Property prices rose by 5.6% between the second quarter of 2015 and that of 2016. Rents also climbed, but at a much slower pace. The increase in the BIL IMMO Index reflects this market upswing driven by the Centre South Region.”
Launched in October 2015 by BIL, in partnership with PwC Luxembourg, the BIL IMMO Index illustrates the housing market trend in Luxembourg to professional, institutional and retail investors. The index, which is updates regularly and published every six months, is based on price changes on the selling and rental markets, as well as factors related to supply and demand such as the national economy and demographic change.
