New flats proving costly
The cost of buying a new-build flat has rocketed thanks to new developments and solid sales in the south of the country.
According to a quarterly report from the Observatoire de l'Habitat, which measures property sales in the Grand Duchy, a new-build flat with more than 100 metres squared cost home-buyers more than 10.5% more during the third quarter of 2011, compared with the same period the year before. The cost of older flats, of a similar size fell 1.95% over the same period.
The growth means that the average new-build flat will set a home owner back around 360,992 euros compared with 301,690 euros for an older flat.
This remains true despite the fact that, on average, older flats have a larger surface area.
Property sales saw a significant hike in the south of Luxembourg, where half of all sales were conducted, compared with 33% in the centre south and 12% in the northern central region.
The most expensive commune for property remains Luxembourg City (4635 euros per sq. metre), followed by Strassen (4556 euros per sq. metre) and Bertrange (4462 per sq. metre). The cheapest properties could be found in Larochette (2914 euros per sq. metre) and Medernach (2959 per sq. metre).
The report was based on actual property transactions carrried out by a selection of solicitors firms in Luxembourg.