Credit: STATEC
Luxembourg's national statistics office STATEC has published a report on housing prices in Luxembourg for the second quarter of 2022.
In the second quarter of 2022, housing prices (apartments and houses combined) increased by 11.5% compared to the second quarter of 2021, which constitutes a slight acceleration compared to the previous quarter, but remains below the rates observed in the two previous years.
Over the whole of 2021, house prices increased by 13.9% compared to the previous year. In 2020, the average annual increase was 14.5% and in 2019 it was 10.1%.
The steepest rise in the second quarter of 2022 was seen in existing home prices, which rose 2.8% from the previous quarter. The indices for apartments under construction are increasing less rapidly than existing apartments, at 0.5% against 2.6% in quarterly variation.
According to STATEC, the selling price per square m² mainly depends on the type of apartment, its surface area and its location. On average, an apartment under construction is between 5% and 15% more expensive than an existing apartment of a comparable surface. The price per m² decreases with the surface of the accommodation. Finally, the prices of apartments decrease quite markedly the further away from the Luxembourg city.
Location is also a determining explanatory factor for the prices of existing homes. In the Luxembourg district, the average price of a house is thus around €1,595,000, almost double the average price in the north of the country. For houses, the median prices by region are systematically lower than the average prices by geographical area, which indicates a strong asymmetry in the distribution of selling prices.
