Severe housing sales crisis in Luxembourg

picture courtesy of RTL

Housing sales come almost to zero, investors have deserted the market in Luxembourg !"A somewhat alarming observation made by Marc Giorgetti, CEO of the largest construction company in Luxembourg. According to him, the market would be now "completely at a standstill.

During his radio interview, he recalled that Luxembourg needed 5,000 housing units per year simply to meet demand. He estimates that as it stands, construction companies will eventually be able to build 2,000 this year and the following year. In this context, he warns that "the gap between supply and demand will certainly not have the effect of a drop in prices". A way of sweeping away the forecasts which for several months have evoked a fall in prices on new buildings.

The reason: the successive increases in interest rates coupled with already very high housing prices. Marc Giorgetti calls for the Luxembourg State to quickly introduce effective measures to revive the real estate market.