Pandemic causes drastic increase in average house and apartment prices

L'essentiel published an article on Monday which delineates the results of the report. Both lockdown and confinement have altered the demands of the market, with more focus being shifted to spatial factors, such as gardens for instance.

The report further conveys that the average house price has increased by 11.2% from the year's first trimester to the third, setting the current rate to €1.183 million. Apartment prices have meanwhile risen by 9.4% to an average of €769,000. Similarly, the average prices for square metres have increased over the same period of time.

The Immotop.lu report thus concludes that the health crisis has significantly affected the real estate market and fuelled the rapid increase of prices.

Demand remains high nevertheless, with an average of 7.25 applications per house and 3.22 per apartment. Due to the uncertainty that arose at the beginning of the outbreak, many deals did not come through, which means that the current offer has increased by 39% for houses and 14.6% and for apartments, compared to the second trimester.

Meanwhile, most in demand remains Luxembourg City, followed by Esch-sur-Alzette and Differdange.