What is the outlook for the residential real estate market in this new year?
According to the experts of the Engel & Völkers group, it seems that the Luxembourg residential real estate market has a bright future ahead of it. Now is the time to unveil its main trends for this new year.
A price increase supported by Brexit
This year again, we expect residential property prices to rise by around 5%. The imbalance between housing supply and demand is expected to continue to increase. It is mainly due to the arrival of foreign workers on the Luxembourg market.
In 2019, this wave of migration is expected to become even more significant with Brexit. At the moment, many English companies have already confirmed their willingness to set up in Luxembourg. Indeed, investors point out that the expected returns in Luxembourg are more secure and significantly higher than those in neighbouring capitals. The fallout on the residential real estate market is the result of the arrival in Luxembourg of workers from the City. However, the supply of new housing does not keep pace with this population growth. At present, we believe that the population influx should at least double the forecast for new projects.
2019 will definitely be the year of Brexit. Negotiated or re-voted? In any case, many companies have already planned their relocation to Luxembourg, thus draining a large influx of people for our country. In summary, the major trends we are forecasting for 2019 further strengthen the determinants in favour of real estate investment in the Grand Duchy of Luxembourg, a pioneering country that has already proven its leadership in many areas.