Nearly three quarters of Luxembourg residents expect house prices to continue rising, a survey suggests.
With the average asking price for a house at around 600,000 euros, you might think that property could not get any more expensive. But, according to the fourth ING International Survey conducted with TNS/Ilres, 74 percent of the 1,000 Grand Duchy residents polled predict costs will continue to rise.
While, it spells good news for those investing in property, it may present challenges to future residents wishing to buy in Luxembourg, as the study highlighted. Altogether 88 percent of people responding expressed concern about the impact of rising costs on the next generation. Meanwhile, just under half (45 percent) predicted that, sooner or later, Luxembourg’s housing bubble would burst.
With its rapidly growing population and small territory, Luxembourg is in an exceptional situation when it comes to the housing market. With demand outstripping supply in recent years, prices were forced up to a record 3,375 euros average per square metre according to the Luxembourg Observatoire last summer.
Not surprising then that 93 percent of residents said house prices were high in Luxembourg and 91 percent said it was more difficult to buy a house now than it was 10 years ago.
Compared with the rest of Europe, Luxembourg’s housing may be expensive but that has not stopped a large proportion of the population investing in property. More than two thirds of respondents (68 percent) own their own home, slightly above the European average (66 percent).
And Luxembourg residents become homeowners on average three years earlier than their European counterparts, with first-time buyers aged around 27 in Luxembourg, compared with 30 in the rest of Europe.
Costs aside, a majority of respondents (82 percent) said that buying a home was better than renting property, from a financial point of view.
The study follows three ING reports on saving habits, financial competence and pensions, published earlier in the year. The results were based on the responses of 12,000 people polled in 12 European countries.
Source link : https://www.luxtimes.lu/luxembourg/luxembourg-property-prices-expected-to-continue-rising/1290730.html
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Publish date : 2023-06-20 20:35:56
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