State and the city of Luxembourg drive real estate market
Between the fourth quarter of 2023 and the fourth quarter of 2024, real estate prices rose slightly again, with the exception of the new apartments (VEFA). And the number of transactions has also increased. The Statec had reported that at the end of March.
VEFA segment is booming: sales almost quadrupled
The VEFA segment recorded the largest increase in transactions. With 395 sales, the number of transactions rose by 272.6 percent compared to the fourth quarter of 2023 (106 transactions). That is almost four times more sales than in the fourth quarter of 2023.
The majority of private individuals or private investors are not responsible for this increase, but the state and the city of Luxembourg.
Private real estate developers become impatient
The state bought a total of 208 apartments in 2024 and the city of Luxembourg 189. According to the annual report 2024, the financial volume for the 208 apartments amounts to 125.95 million euros. The budget of the city of Luxembourg for the 189 apartments – according to the city – is 189.93 million euros. Together, the VEFA purchases of the state and the city of Luxembourg make up 54.5 percent of the financial volume of all VEFA transactions (579.6 million euros) in 2024.
In the city, the average price per apartment was one million euros, the state spent an average of 605,000 euros per apartment.
