The Luxembourg real estate for sale is quite limited and the demand for housing has been steadily rising. This has led to an increase in the prices for the Luxembourg real estate especially in the first quarter of this year. According to reports that have been released by the Luxembourg Ministry of Housing, the increase in the first quarter of this year especially on YOY basis has seen the prices increase by around 4%.
The average price for the apartments was 349,519 Euros and this means that there has been an increase of almost 5.5% from the previous year (2009). The average price for the houses during the same period i.e. quarter 1 2010 was 561,031 Euros and this has also seen an increase of around 3.5% from the previous year.
According to the STATEC, which is the Luxembourg’s national Statistical institute, the average price per square meter has risen by 4% and the prices of existing and new apartments have risen considerably in the first quarter of this year. The transactions in the Luxembourg real estate market has also increased by 11% in the same period as compared to the figures last year. There has been an increase in the purchases for all the Luxembourg real estate for sale.
The demand for the Luxembourg real estate has happened due to the economic recovery and the prevalent low interested rates in the country.
The Luxembourg real estate for sale on the supply side is severely constrained and this has led to an increase in the prices for the real estate in Luxembourg. The property taxes for the Luxembourg real estate are also quite low. For those that own property, there is mortgage interest deductibility as well and these are the causes for the demand in the Luxembourg real estate listings.
Since this is a place where the rich and the famous from all over the world can be seen, it is an extremely expensive city to stay in. for those that want to stay in the city centre, an 80 square meter apartment is likely to cost 500,000 Euros, which is quite expensive even by the international real estate market prices.
As expected the Luxembourg rentals are quite low in the city. The income that is generated from the Luxembourg rentals is taxed at progressive rates as are inheritance and capital gains.