Median House Prices Increase by 4.2% over One Year

According to the Luxembourg real estate advertising site, Immotop.lu, the median cost of housing in the Grand Duchy in the first half of 2021 stood at €842,000, or €6,137 / m2.

Rising prices

Over one year, the median cost of housing (houses and apartments) in Luxembourg rose by 4.23%, from €807,746 to €842,000, and by 11.74% in terms of price / m2, from €5,492 / m2 to €6,137 / m2.

Less developed offer

The number of offers available on the market fell by 31.37% compared to the first half of 2020, which had already recorded a decrease in the number of properties put up for sale.

The number of offers for houses dropped by 32.02%, whilst that of apartments fell by 31%.

In Luxembourg City, the number of sales advertisements for houses decreased by 10.83% and there were 42.35% fewer offers for apartments.

According to Immotop.lu, the lack of available housing in Luxembourg, although a major issue for the country, is therefore likely to stagnate for some time yet. This is attributed in part to the forced shutdown of construction sites during the COVID-19 pandemic in the first half of 2020 as well as of the shortage of construction materials that Luxembourg is facing, as well as still unexploited building land.

A heterogeneous development 

The cost of purchasing a house in Luxembourg (all municipalities combined) in the first half of 2021 was €1,020,000, or € 5,465 / m2, while a house located in Luxembourg City could reach €1,557,500, or 9,023 € / m2.

In the first half of 2020, the price of a house located in Luxembourg was €945,000, or € 5,064 / m2; that of houses in the capital amounted to €1,577,265, or € 8,952.57 / m2.

The median price per m2 of a house has therefore increased by 7.92% across the country, compared to 0.79% in Luxembourg City.

The acquisition of an apartment in Luxembourg (all municipalities) represents to date €642,900, or € 7,145 / m2. The cost of purchasing an apartment in Luxembourg City, however, stands at €860,000, or € 11,626 / m2.

In the first half of 2020, the price of an apartment in Luxembourg was €575,000, or €5,961.54 / m2; in Luxembourg City this reached €785,000, or €11,458.33 / m2.

The median price per m2 of an apartment has thus increased by 19.85% nationwide and by 1.46% across the capital. 

Most expensive areas

Bertrange and Mamer are ahead of the capital and are at the top of the ranking of the most expensive areas for the acquisition of housing with a median price per m2 of €12,867.44 and €12,731.48 respectively.

Mamer and Leudelange have shown spectacular developments over one year with a price per m2 increase of 70.48% for the former and of 54.35% for the latter.

Luxembourg City remained relatively stable with an increase of 1.91%, reaching €11,944.71 / m2. 

However, price evolution differed between the the districts of the capital. Luxembourg-Kirchberg and Luxembourg-Weimerskirch were tied for first place in the central districts where housing is the most expensive with €16,975.56 / m2. In addition, Luxembourg-Weimerskirch recorded a remarkable increase of 100.41% in its price / m2 compared to last year.

Conversely, Luxembourg-Gasperich, ranked 5th most expensive district in Luxembourg City, recorded a slight decrease of 0.88%.

Least expensive areas

Winseler has emerged as the municipality with the cheapest housing with € 3,561.22 / m2, i.e. a decrease of 14.84% compared to the same period last year.

Manternach, ranked 4th cheapest municipality, recorded a drop of 28.83% in its price / m2.

In the capital, Luxembourg-Cents was the district with the lowest price / m2, i.e. €8,967.58 / m2, closely followed by Luxembourg-Hamm with €9,047.62 / m2, following a drop of 8.67%.