Language And Country

MENU - CONTACT

 
Luxembourg
14 Boulevard Royal L-2449 Luxembourg
 
Monday to Friday
8.30 am to 5 pm
 
Brussels
Chaussée de La Hulpe, 120 – 1000 Brussels
FLANDERS
Kortrijksesteenweg 218 – 9830 Sint-Martens-Latem
 
Monday to Friday
8.30 am to 4.30 pm

MENU - Mon Compte

Actualités Retour

BlogDetailPortlet

Despite the health situation, property is still much in demand in Luxembourg, and prices are going up and up What’s the average cost of renting or buying a flat or a house? What's the price per square metre? To invest successfully in property, it's important to have good support. Property in Luxembourg is in shorter supply than demand, which is driving prices higher.

According to data based on property ads between March 2019 and March 2020, AtHome estimates that it costs around €1,616 to rent a flat and €2,963 to rent a house.

Purchase price history

(source Observatoire de l'Habitat - Q4 2019 and Q4 2020)

+14.4% for new flats (+15.8% for existing flats)
+19.7% for period houses

Average purchase price

In March 2020, AtHome estimated that the average price (across all sizes of property) for a resale flat was €559,873, for a new flat €650,378 and for a house €882,099.

Price per square metre

According to figures published in April 2021 by the Observatoire de l'Habitat, for a flat under construction of less than 50m2, the average price is €9,999/m2 (€8,659/m2 for an existing flat). For a flat under construction of 90m2 to 109m2, the price is €7,139/m2 (€6,591/m2 for an existing flat). Flat prices are twice as much in the capital compared to the north of the country.

New laws come into force in 2021 in response to increasing demand

From 1 January 2021, finance providers in Luxembourg will have to comply with the following legal requirements: 

  • maximum finance limit of 90% of the purchase price excluding costs for properties used as a main residence;
  • maximum finance limit of 100% of the purchase price excluding costs for first-time buyers of a main home;
  • maximum finance limit of 80% of the purchase price excluding costs for second-home properties and buy-to-lets;

The tax provisions for rental properties are changing. For new buildings acquired from 1 January 2021, the accelerated depreciation rate will be reduced from 6% to 4% and will apply for 5 years, compared to 6 years previously. This 4% rate will be increased to 5% for owners whose total depreciable bases are less than €1 million. Depreciable bases over €1 million will be depreciated at the rate of 4%.

How best to finance your property projects?


Financing your property projects fits naturally within the overall support we offer our clients. As each situation is specific and personal requirements differ, the solutions we propose are always tailor-made for you and take into account all aspects of your project.

 
Find out more:
Financing your property projects

(Internet sources - 21/06/2021)

www.athome.lu -les prix de l'immobilier continuent de grimper au Grand Duche

www.wort.lu - les prix de l'immobilier n'en finissent plus de grimper

5minutes.rtl.lu Observatoire de l’Habitat

Property exposure - 2021 - extract from Statec

 


Let's discuss how I can help you

Paulo Flora Rei
Private Banking Adviser

Homepage - Newsletter sans HR

Subscribe to the monthly newsletter
Receive monthly analyses of the financial markets and news from the Bank.

Check out our latest newsletter Check out our latest newsletter