Luxembourg’s residential real estate market is currently undergoing a tremendous change, primarily a price correction, following a decade-long period of exceptional growth fuelled by cheap loans and high net disposable income. While disposable income still remains high, loans are now much , and lending standards are getting . It took less than 14 months for the European Central Bank to raise the deposit facility from 0.0% to 4.0%, an increase of 400 basis points, between July 2022 and September 2023. This is an unprecedented rate change, which consequently pushed housing loan and mortgage rates in Luxembourg from an average 1.34% to…
