According to a study by an authoritative source, a mortgage applicant in the housing market in Luxembourg is a couple aged 30-39, occupying an average of €550,000. Another characteristic feature of this type is that inflationary housing prices (an increase of 12-14% in 2019) do not stop the demand. Researchers have found that demand remains significantly high, and rates, in turn, are very low.
Here are some interesting statistics for this sector:
- In 2019, half of the mortgages offered by brokers were intended for applicants aged 30 to 39 years (51%). The second most popular group looking for loans was people aged 40 to 49, which is 23%. The share of young people from 20 to 29 years old, hoping to acquire the first real estate, accounted for 18% of mortgages issued.
- The vast majority of future homeowners (72%) were married or lived together. In other words, this means that mortgage seekers are usually two people who combine their income for the joint purpose of acquiring a home.
- Single people are the remaining 28% of mortgage seekers.
- The top three nationalities of the persons looking for a mortgage are Luxembourgers (19.7%), Portuguese (11.4%), and Italians (5.1%). Citizens of 81 different countries applied for a mortgage in 2019.
- Experts note that according to most of the questionnaires (85%) those were residents of Luxembourg. Finally, the average income of mortgage applicants was about €6,500 per month.
According to experts, the majority of candidates (94%) give preference to older buildings (64%). This includes homes that require repairs and those that do not. New buildings represented only 28% of the total number of mortgages taken.
- The average borrowing amount was €550,000, for projects worth typically €615,000. The specialists confirmed that in October 2019, the average price of an apartment in Luxembourg was €530,000. In the same month, the average cost of a house was €860,000.
- In most cases, 29.9%, it was a mortgage of €400,000 to €599,999. Another 26.1% took mortgages ranging from €200,000 to €399,999, and 22.4% – from €600,000 to €799,999.
- The contribution of homeowners reached €70,000 or 10% of the total cost of projects.