Housing prices in Luxembourg continue to fall
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The housing market in Luxembourg is facing challenging times. Despite lower mortgage rates and rising loan volumes, buyers remain wary and property prices continue to fall.
Sales: prices are going down
- In November 2024, the average asking price per square metre was €8,272, 5.2% lower than in January (€8,722).
- Compared to the peak in 2022, when prices reached €9,400/m², the decrease is 13%.
- This trend may indicate pressure on some sellers and limited demand in the luxury property market, where deals are giving way to more affordable segments.
Against the background of stagnating sales, the rental market shows the opposite dynamics:
- Average asking rents rose by 6.8% YTD to €28.49/m² in November.
- Rising rental prices are outpacing inflation and wage increases, exacerbating the housing affordability problem.
- The shortage of supply continues to fuel pressure on tenants, especially in popular neighbourhoods.
The decline in property prices shows a gap between sellers' expectations and buyers' willingness to pay. At the same time, rental growth indicates a shortage of affordable housing, which may affect the long-term stability of the market.
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