Falling property prices in Luxembourg: good news for the younger generation?

Rudolphe ABEN

It's news that will make Luxembourg property owners shudder: according to Statec, property prices will fall this year. After double-digit inflation rates in recent years, the trend is finally reversing. But is this fall in prices really bad news for everyone?
While it is true that homeowners may see the value of their property fall, this fall in prices could be beneficial for the younger generation who aspire to become homeowners. After all, house prices have been soaring for years, making access to property difficult or even impossible for many households.
The fall in house prices could therefore allow the younger generations to realize their dream of becoming homeowners. It could also encourage investors to look at properties that were previously out of reach.
But how can we explain this fall in house prices in Luxembourg? First of all, it is due to the rise in interest rates, which has slowed down the demand for credit, including real estate loans. In addition, the economic and health crisis linked to the COVID-19 pandemic has also affected demand for property.
It is therefore time to welcome this fall in property prices, which could allow the younger generation to realize their dream of homeownership. Let's hope this trend continues in the coming years, so that access to property is no longer a luxury reserved for the privileged few.