Experts have confirmed that during the last 12 months, home prices in Luxembourg have plummeted from levels that would have made your grandmother pass out to ones that only would have made her raise her fist in righteous indignation and shout, “my god, that’s a lot of money.”
“Last year at this time, we were seeing some freaking expensive prices, but those have dropped to just super costly,” said University of Wiltz economist Dr. Raymonde Elmira, citing a two-bedroom apartment in Gonderange that had a list price of €740,000 but has nosedived to €690,000.
While the news might be welcomed by struggling homeseekers only earning 100k per year, to sellers, the downturn in the market is catastrophic. Some homeowners who counted on selling their property for an exorbitant sum find they will have to settle for one that is merely outrageous.
Felipe Castana and his partner Ian Preeps, who have had their Belair house on the market since last month, say they have accepted the fact they will have to sell their home for only €800,000 more than they bought it in 2013.
“We always thought there was a very nice symmetry in buying something for one million and selling it for two million,” said Castana. “Sadly, due to the crash, we’ll have to settle for only four-fifths of a 100 percent ROI.”
Dr. Elmira says that sellers are not the only ones whose stratospheric hopes have been dashed and are now only sky-high.
“Real estate agents who expected to buy an Audi A8 this year now worry they’ll only be able to afford an A7,” she said.
Also hurt are neutral observers, those who either have no plan on buying a home in Luxembourg or live abroad and just look at local listings for sick pleasure.
“When I’m having a bad day, I often check out Luxembourg property websites,” says Budapest hair salon owner Erika Nagy. “I usually laugh and feel much better about my own situation, but now I’m afraid I’ll only smile and say in a chirpy voice, ‘at least I’m not trying to buy something there.’”
Originally published by RTL Today