Luxembourg housing prices soar by 13% in a year
The economic crisis triggered by the Covid-19 pandemic has not stopped the drastic growth of housing costs in Luxembourg - the highest in the European Union - despite stalling sales, the EU's statistics body said.
Housing costs increased by 13.3% in the second quarter compared to a year earlier, and by 4.4% from the first quarter, Eurostat said, roughly in line with figures from the Luxembourg agency Statec.
Only the number of sales is declining, with a decrease of 22.2% compared to the previous quarter. In the first quarter, they decreased by 7.1% compared to the previous quarter.
A buyer in Luxembourg now pays an average of €8,354 per square metre for a new flat, and €6,826 for an existing one.
In the first quarter of the 2020, house prices had already risen 14% year-on-year. Around 18,000 of the poorest households in Luxembourg spend at least 40% or more of their income on housing.
During the second quarter of 2020, house prices, as measured by Eurostat's house price index, increased by 5% in the euro area and by 5.2% in the EU compared with the same quarter of 2019.
Compared to the first quarter of this year, house prices in the second quarter of 2020 increased by 1.7% in the euro area and by 1.5% in the EU.
Among the EU nations for which data are available, the highest annual increases in housing prices in the second quarter of 2020 were observed in Luxembourg (+13.3%), Poland (+10.9%) and Slovakia (+9.7%).