After months of uncertainty due to changing opening strategies and curfews, it is clear that the COVID-19 pandemic has permanently changed the residential property market, price levels have established themselves at a high level and further price increases are to be expected. The pandemic has significantly increased the need for a safe investment. This brings with it a renewed increase in demand for residential property.
There are different reasons for this trend: Due to the pandemic, many of the respondents have developed the desire to have a garden. Currently, 90% of the participants already live in a property with an open space, of which 46% have a balcony and 44% have a terrace. However, when asked about the preferred way of living, the picture clearly shifts towards a house with a garden.
This is not really surprising after the last few months. Due to the different corona measures and contact restrictions of the last year, many long for more outdoor space. Especially for families with children, private retreats in the countryside, as well as a larger living space became very important. The results prove that this is a long-term trend and that the desire for more space in and around the home has increased. This will also have an influence on urban planning and new developments in the medium and long run.
In summary, the third part of the Engel & Völkers study in Luxembourg has also shown that demand for residential property is at an all-time high and prices continue to rise steadily in line with the low supply and high demand. The trend towards more open spaces and a greater need for space will permanently change the residential property market as well as urban development. Many customers are looking for a safe haven for their assets in real estate, while for others emotional reasons are at the forefront of the purchase decision.