Flat prices continue to grow
(JB) The cost of buying a flat in the Grand Duchy has ballooned by nearly six % in the course of a year.
The announcement made by data analysts Statec may be bad news for first-time buyers who will have to pay out on average 930 euros per square metre.
There is still hope for bargain-hunters, however, as the Statec report for the third quarter of 2011 shows that the cost of new flats remains lower than older properties.
According to the report, the average cost of a new flat per square metre is just 340 euros compared with 740 euros per square metre in an old flat.
The report was based on the prices stated in notary documentation on properties bought during the last year. The average price of flats rose 5.7% during the third quarter of 2011 compared with the same period in 2010. The bill was higher for older flats, for which the average value rose 7.6% in a year than for new-builds, which rose just 2.3%.
The report suggests that the rising cost of property was no longer related to regions and that there had been a blanket growth in property values across the country.
Perhaps unsurprisingly, the number of properties changing hands diminished in the second quarter of 2011 compared to the same periods in the two years prior. This is thought to have been caused by amendments to the Bëllegen Akt, which pegs access to a financial incentive for first-time buyers to specific salary thresholds.