Access to real estate becomes complicated
October 2, 2015
Lack of housing, high rent, prices per square meter on the rise. Acquiring housing is indeed a true problem in Europe and even more so in Luxembourg. This is the way that the residents feel according to a major survey conducted throughout Europe. Feedback from this survey highlights the daily obstacles that a large number of our fellow citizens are facing.
A pessimistic European outlook
Property prices are generally too high and are putting a strain on purchasing power. Access to real estate is more and more difficult, and rent prices are on the rise. Europeans have a very pessimistic analysis about their opportunities in terms of housing. For an average of 80% of them, buying their first home is becoming more and more complicated. If Germans apply this outlook to a relatively small majority of 59%, the Luxembourg people will be the champions of pessimism since 94% of them are convinced about the state of the situation. Europeans, in particular, believe that housing prices are too high, and a new development shows that even the owners, not only the tenants, agree with this analysis. The conclusion drawn is that laying a foundation is no longer a solid investment.
Challenges for Luxembourgers
The Luxembourg people face a real estate situation that differs slightly from the other European states. In fact, unlike Spain, for example, the Grand-Duchy has not experienced the real collapse of the housing bubble since prices held somehow despite the rise. Additionally, despite construction policies, the lack of housing is still being felt while maintaining high prices for both renting and buying. Close to a third of Luxembourg tenants are thus finding it difficult or impossible to pay their rent every month, while 15% of owners are having difficulty repaying their loans despite the current, very low rates. The sole cause of this problem remains the same for the latter, as for Luxembourgers who are not concerned with paying off their loan and their rent; the prices are still too high!
What are the prospects for Luxembourgers?
In recent years, the housing situation has proved to be very fluctuating. However, the most recent trends rather encourage optimism. As a matter of fact, new housing construction programs, for sale or rent, rent subsidies for the needy as well as the maintenance of low interest rates should improve the situation in the Grand Duchy. 76% of the residents of Luxembourg, however, do not see things this way and remain pessimistic regarding price developments. Real estate prices remain their main concern when making a purchase as much as the housing living area and situation itself.
Despite a difficult situation, felt as such by the majority, there are many opportunities for real estate in the Grand Duchy! Feel free to do your research on www.immotop.lu!
A pessimistic European outlook
Property prices are generally too high and are putting a strain on purchasing power. Access to real estate is more and more difficult, and rent prices are on the rise. Europeans have a very pessimistic analysis about their opportunities in terms of housing. For an average of 80% of them, buying their first home is becoming more and more complicated. If Germans apply this outlook to a relatively small majority of 59%, the Luxembourg people will be the champions of pessimism since 94% of them are convinced about the state of the situation. Europeans, in particular, believe that housing prices are too high, and a new development shows that even the owners, not only the tenants, agree with this analysis. The conclusion drawn is that laying a foundation is no longer a solid investment.
Challenges for Luxembourgers
The Luxembourg people face a real estate situation that differs slightly from the other European states. In fact, unlike Spain, for example, the Grand-Duchy has not experienced the real collapse of the housing bubble since prices held somehow despite the rise. Additionally, despite construction policies, the lack of housing is still being felt while maintaining high prices for both renting and buying. Close to a third of Luxembourg tenants are thus finding it difficult or impossible to pay their rent every month, while 15% of owners are having difficulty repaying their loans despite the current, very low rates. The sole cause of this problem remains the same for the latter, as for Luxembourgers who are not concerned with paying off their loan and their rent; the prices are still too high!
What are the prospects for Luxembourgers?
In recent years, the housing situation has proved to be very fluctuating. However, the most recent trends rather encourage optimism. As a matter of fact, new housing construction programs, for sale or rent, rent subsidies for the needy as well as the maintenance of low interest rates should improve the situation in the Grand Duchy. 76% of the residents of Luxembourg, however, do not see things this way and remain pessimistic regarding price developments. Real estate prices remain their main concern when making a purchase as much as the housing living area and situation itself.
Despite a difficult situation, felt as such by the majority, there are many opportunities for real estate in the Grand Duchy! Feel free to do your research on www.immotop.lu!