We've seen house prices suddenly hike year on year since 2018. Why? Will this trend continue? What are the effects of COVID on the housing market?

From 2010 to 2017, there was a price rise of 4.5 to 5%. Since 2018 it's been 10-15% per annum. Why? Well, we try to figure that out in this discussion.

Then, we've also had COVID where one might think that house purchasing would dampen down. Not the case.

Some reasons for the sudden hike might include the continued fall in interest rates to an exceptionally low point today, Brexit, time available during home-working / COVID to think about buying, investing in a solid asset in a changeable, uncertain market and wanting more room to work from home. Coupled with this we have the continued issue of a severe lack of housing available here in Luxembourg.

The upshot is that experts are predicting a more controlled growth of the market going forward, this also due to some new laws the government have put in place which mostly affects investors / second time buyers.

As for money, well tenants now frequently allocate about 40% of their income on rent, compared to less than 20% in 2010. For new home-owners there is usually a very high debt ratio (45% of income) and a very high loan to value.

To discuss these issues, I'm joined by Pierre Clement, managing director of Nexvia, Vincent Quillé, managing director of Nexfin and Julien Licheron a research associate at LISER - Urban Development and Mobility, and member of the Observatoire de l'Habitat : expert on the residential market in Luxembourg since 2009

You can find out what the government and municipalities are planning for future urban planning developments on the PAG.

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Get in touch with Lisa Burke at www.lisatoniburke.com