Six Point Six

The real estate platform atHome has just published its figures for the second quarter, showing the Luxembourg housing market was more stable. Given continued strong demand, rent prices continue to rise. Over the past year, prices have increased by 6.6% for houses and 4.2% for apartments. From one quarter to the next, house rents recorded a clear increase of +13.4%, while the increase was more moderate (+3.3%) for apartment rents, which nevertheless continue to rise in Luxembourg.[1]

Rents vary by region. Eastern Luxembourg has seen the strongest increase for houses (+9.6%), while the south stands out for apartments (+8.3%). Conversely, rents are falling for houses in the north (-4.0%) and for apartments in the west (-4.6%). The prices listed in ads for existing houses rose slightly by 2.7% in the second quarter. Prices for existing apartments, on the other hand, fell by 1.4%. After several quarters of decline, new-build apartments show a very slight increase (+0.1%), reflecting a relative stability of the market as a whole.[1]

The report was published before the government's announcement on 16 July presenting the construction booster package. These measures, designed to support construction, rental investment, homeownership, and the development of affordable housing, could help shift market balances in the coming quarters, atHome cautiously suggests. The next quarterly reports should allow us to measure the effects.[1]

6.6% for houses. 4.2% for apartments. 13.4% quarterly for house rents. The market is "stabilising." Stabilising means prices are not falling. Stabilising means rents are still rising, but more slowly. The government announced seven measures on 16 July to boost construction: Bellegen Akt at 45,000 euros, VEFA at 0% duty, 300 million in state purchases. The housing waiting list has 9,500 families. The rents are the highest in Europe. The quality of life is the best in the world. The atHome report says the market is stable. The 9,500 families on the waiting list are also stable. They are still waiting.[1]