Economy & Politics

The price of housing up 13.3% year on year

The latest Eurostat study, published on Wednesday, reports a significant increase in housing prices in Luxembourg. Compared to last quarter, the bill was up 4.4%.

The latest Eurostat study, published on Wednesday, reports a significant increase in housing prices in Luxembourg. Compared to the last quarter, the bill was up 4.4%.

(DH) – The health and economic crisis that has affected Luxembourg since mid-March has not yet been reflected in real estate statistics. Following data on the cost of housing communicated by AtHome, the main classifieds site, then Eurostat in July, the statistical office of the European Union confirms thetends to increase.

Among the Member States for which data are available, the largest annual increases in house prices in the second quarter of 2020 were observed in Luxembourg (+ 13.3%), in Poland (+ 10.9%) and Slovakia (+ 9.7%), while price reductions were recorded in Hungary (-5.6%) and Cyprus (-2.9%).

Compared to the previous quarter, the largest increases were observed in Luxembourg (+ 4.4%), Italy (+ 3.1%) and Austria (+ 2.5%), while decreases were observed in Hungary (-7.4%, see note below the table), in Estonia (- 5.8%), Latvia (-2.3%), Bulgaria (-1.1%) and Ireland (-0.1%).

More generally, during the second quarter of 2020, house prices, as measured by the Eurostat house price index, increased by 5% in the euro area and by 5.2% in the EU compared to the same quarter of 2019. In the first quarter of 2020, house prices increased by 5.1% and 5.6% respectively. Compared to the first quarter of this year, house prices in the second quarter of 2020 increased by 1.7% in the euro area and by 1.5% in the EU.

Assuming that the surge in real estate prices comes to a halt due to the pandemic, the various experts believe that this situation should only be temporary. According to Jean-Paul Scheuren, President of the Real Estate Chamber of the Grand Duchy, prices should continue to rise continuously after the crisis. Julien Licheron, coordinator of the Habitat Observatory at Liser, judges that growth will be a little weaker. According to him, prices in the sector should reproduce the pattern observed after the 2008-2009 crisis, namely to return to its previous level after one year.

As a reminder, Eurostat uses its own index (IPL) to measure the evolution of the prices of all residential properties, apartments, single or semi-detached houses, new or old.


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