According to Luxembourg's national statistics office, Statec, the price of housing increased 13.4% in the third quarter (Q3, July to September) 2021, the same year-on-year increase as seen in the second quarter.
Housing prices in the first quarter of 2021 were 17.2% higher than in the first quarter of 2020, the highest annual change (as measured quarterly) recorded since 2013 from which the data is available.
In the case of existing dwellings (not new, i.e. second-hand sales/purchases), the increase was 15.3% for houses and up 13.6% for apartments. In the case of new apartments, the annual price increase seen in 2021 Q3 was 10.8%.
The average sale price for existing apartments was €648,413 (for 82 m2 floor area), translating into a price of €8,215 / m2, the highest on record since 2013.
In comparison, new apartments were sold on average at €662,914 for a relatively larger floor area of 86 m2. The average price by floor area was €8,011 / m2, less €1,046 / m2 (down 11.5%) from the first quarter of 2021.
The price increase in existing (second-hand) apartments is also reflected in the total number of transactions: a total of 1,118 units changed hands in third quarter of 2021, a modest 6.4% increase compared to the third quarter of 2020 (1,051 units) while transactions for new apartments fell 26.8% (467 units in Q3 2021). The number of transactions in new apartments fell consistently during the first three quarters of 2021.
The annual total number of transactions in new and existing apartments fell in 2020 compared to 2019.
From 2015 onwards, VAT is included in the prices and depends on the purpose of the acquisition.
