If you were hoping that the fall in property prices would continue in Luxembourg, you will need to revise your plans. The latest report from the Habitat Observatory shows a stabilization of sales prices in the 3rd quarter of 2024. The Statec index is stable over the quarter (+0.2% compared to the 2nd quarter of 2024) and only slightly down over twelve months (-1.7% between the 3rd quarter of 2023 and the 3rd quarter of 2024).
The drop in prices of existing apartments is still visible over twelve months (-3.6% compared to the 3rd quarter of 2023), but it is driven exclusively by the 4th quarter of 2023. The prices of existing houses are stable over twelve months (+ 0.3% compared to the 3rd quarter of 2023). A drop in prices remains visible in the segment of apartments under construction (-2.5% compared to the 2nd quarter of 2024), but it is not necessarily significant due to the very limited number of transactions.
Activity is clearly recovering on the market for existing apartments (transactions up 44.2% compared to the 3rd quarter of 2023) and on that of existing houses (+64% over the same period). On the other hand, only 144 transactions of apartments under construction were recorded in the 3rd quarter of 2024, a number almost four times lower than the average of the years preceding the sharp drop in activity in 2023 (570 sales of apartments under construction in 3rd quarter on average over the years 2017 to 2022).
Apartment rents – for new rental contracts – fell slightly over the quarter (-1.6% compared to the 2nd quarter of 2024), but they remain up 3.6% over twelve months. An increase significantly higher than that of consumer prices (+1.6%) over the same period. The increase in rents during the lease (for tenants who do not change accommodation) is relatively moderate (+1.7%).
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