According to Luxembourg's national statistics office, Statec, housing prices increased by 13.9% in 2021 compared to the previous year.
In the fourth quarter of 2021, housing prices (apartments and houses combined) increased by 12.0% compared to the fourth quarter of 2020, which constitutes a slowdown in the rates observed in the previous quarters. Existing apartment prices rose by 13.3%, while new apartment prices incresed by 10.5% between the fourth quarters of 2020 and 2021; the price of existing houses rose by 10.5% during this same period.
Looking at 2021 as a whole, housing prices increased by 13.9% compared to the previous year. In 2020, the average annual increase was 14.5%; in 2019, it amounted to 10.1%.
The price of apartments under construction witnessed the most pronounced increase in the fourth quarter of 2021, going up by 7.7% compared to the previous quarter. The indices for existing apartments and old houses increased less rapidly than in previous quarters, by 2.3% and 1.1% respectively.
The average price of a house in the canton of Luxembourg (in and around the capital) at the end of 2021 was around €1,450,000 - almost double the average price in the north of the country.
On average, the price per square metre of a new apartment was €8,902, compared to €8,105 for an existing apartment. Statec noted that the prices of apartments decreased significantly the further the distance from the capital.