New flat constructions more concentrated in the urban centres | LISER

New flat constructions more concentrated in the urban centres

Apartments under construction refer to apartments sold off-plan (Vente en Etat Futur d’Achèvement - VEFA). Since 2008, the sale prices of apartments under construction have increased quite significantly in the Grand-Duchy of Luxembourg; the average growth rate is about 4.7% per year.

A greater increase in Luxembourg City and in the surrounding municipalities

Between 2008 and 2017, the average price of apartments under construction had a greater increase in Luxembourg City and and in the surrounding municipalities (Bertrange, Hesperange and Strassen). On the other hand, prices rose less rapidly than average in the Nordstad and in most municipalities located in the canton of Esch-sur-Alzette.

The role of accessibility in Luxembourg-City

These differences suggest that accessibility in Luxembourg-City has played a greater role in real estate prices which increased even more since 2008. This is evidenced by real estate prices that have increased all the more strongly for the nearest / most accessible municipalities of Luxembourg-City.

Apartments under construction refer to apartments sold off-plan (Vente en Etat Futur d’Achèvement - VEFA).

Since 2008, the sale prices of apartments under construction have increased quite significantly in the Grand Duchy of Luxembourg. The average sale price of an apartment under construction rose from € 4,204 / m² in 2008 to € 6,351 / m² in 2017. This represents a total increase of 51.1%, ie an average of + 4.7% per year.

However, this increase in the price of apartments under construction was not homogeneous over the territory: the average price of an apartment under construction increased by 64.9% between 2008 and 2017 in Luxembourg City, an average of +5.7% per year. Prices have also risen above average in municipalities on the outskirts of the capital (Bertrange, Hesperange and Strassen in particular). On the other hand, as for the prices of existing apartments, prices of apartments under construction rose less rapidly than average in the Nordstad (Ettelbrück, Diekirch) and in most municipalities located in the canton of Esch-sur-Alzette. In most of these municipalities, the average price of an apartment under construction between 2008 and 2017 increased indeed between 30% to 42%, with an annual growth rate between 3% and 4% on average. In Esch-sur-Alzette, for example, the average sale price of an apartment under construction rose by 3.3% per year.

These differences suggest that accessibility in Luxembourg-City (which remains the main centre for jobs and services) has played a greater role in real estate prices which increased even more since 2008. This is evidenced by real estate prices that have increased all the more strongly for the nearest / most accessible municipalities of Luxembourg-City.

Field

Apartments under construction (sold off-plan), a given year.

Source

Ministère du Logement – Observatoire de l’habitat

Statistical information taken from notarial deeds

Reading Guide

The average sale price of an apartment under construction in 2017 was higher than € 6,500 in Luxembourg City, while it was between € 5,000 and € 5,500 / m² in Esch-sur-Alzette.

Prices per municipality for existing apartments and for apartments under construction for the period from July 1, 2017 to June 30, 2018 are available by clicking on the following link:

http://observatoire.liser.lu/prixenregistres.cfm?pageKw=pe_appart_commune

Publications related to the topic of the indicator
LISER, 2017, Le logement en chiffres n°6, 10 p.
LISER, 2016, Le logement en chiffres n°5, 10 p.
BOUSCH Patrick, LICHERON Julien
In: SCHRONEN Danielle, URBE Robert. SozialAlmanach 2012. CARITAS Luxembourg, 2012, pp. 249-258.
POUGET Clémence, FELTGEN Valérie, SKOCZYLAS Konrad, DECOVILLE Antoine
CEPS/INSTEAD, 2013, Dossiers thématiques (Observatoire de l'Habitat) n°9-2013, 42 p.