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House prices jump by more than 10% in space of year
Housing

House prices jump by more than 10% in space of year

by John MONAGHAN 30.06.2022
But number of transaction drops in the first quarter amid early signs market may be cooling
The past decade's explosion in housing prices has seen calls for government to intervene
The past decade's explosion in housing prices has seen calls for government to intervene
Photo credit: Anouk Antony

House prices in Luxembourg jumped by more than 10% in the first quarter of this year compared to 2021, according to official figures released on Wednesday, amid some signs the country’s property market may be cooling.

There was a 10.5% rise in house prices – combined both existing and new properties – in a year, a report by Luxembourg’s statistics agency Statec and housing research body Observatoire de l’Habitat said.

That was a lower increase than the 12% to 15% annual rise house prices have shown since 2018, reaching a maximum of 17% in 2020. Few countries have seen property prices jump as sharply as the Grand Duchy in recent years.  

The spike in prices also came amid a drop in the number of transactions, which fell by more than 2% compared to the first quarter of 2021. The average price of an apartment in Luxembourg now stands at €688,428.

Luxembourg would need to build close to 7,500 additional properties annually between now and 2026 to keep on top of rising demand, a think tank said on Tuesday, warning that the country's housing crisis could worsen significantly.

Real estate in Luxembourg almost doubled in value in the decade from 2010, the third-highest increase in the EU, with the International Monetary Fund warning that the Grand Duchy needs to take urgent action to cool the housing market.


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