Luxembourg real estate platform Immotop.lu has published the findings of its study on the impact of the coronavirus pandemic on housing prices in the Grand Duchy.
In its study. Immotop.lu compared the median prices of houses and apartments in Luxembourg calculated on all advertisements published on its site during the first three quarters of 2020. In the first quarter, 1,994 houses were advertised as for sale on Immotop.lu. This number of listings decreased slightly in the second quarter to 1,932 homes, before increasing to 2,692 in the third quarter (39.3% more than in the previous quarter).
Regarding apartments, 4,575 apartments were advertised in the first quarter, compared to 3,396 advertisements in the second quarter (down 25.8%). In the third quarter, the real estate platform registered a total of 5,242 apartment announcements - a 14.6% increase in the supply of apartments between the first and third quarters.
The study also revealed that the health crisis resulted in a dramatic increase in Luxembourg’s house and apartment prices: the median house price rose by 11.2% from the first to the third quarter of the year, whilst the median price for an apartment increased by 9.4%. In the first quarter of 2020, the median price for a house was €1,064,000. In the second quarter, this figure rose by 4.9% to €1,116,000. In the third quarter, the median price increased by a further 6% to €1,183,000.
Similarly, the median price for an apapartment in Luxembourg rose from €703,000 in the first quarter to €719,000 in the second quarter of the year (up 2.3%). The median price rose again to €769,000 in the third quarter (9.4% higher than in the fist quarter).
The national average housing price per square metre also increased during this period. In the first quarter, the median price per square metre of houses for sale was €5,847. This price rose to €6,071 per square metre in the secon quarter and reached €6,650 in the third quarter of 2020, representing an increase of 13.7% between the first and third quarters. Over one year, the price per square metre announced for houses increased by 22.6% (from €5,423 in the third quarter of 2019 to €6,650 in the third quarter of 2020).
The median price per square metre of apartments also rose considerably, from €9,325 in the fist quarter to €9,575 in the second (up 2.6%) and €10,210 in the third quarter (up 6.6% over a quarter). Between the first and third quarters, the median advertised price per square metre for apartments thus increased by 9.5%.
