Luxembourg has the most expensive real estate market of any European capital with an average purchase price of 470,000 euros (564,000 dollars) according to a survey by property firm Era Immobilier.
The metropolis of London, last year's priciest capital, has been relegated to fifth place despite having a population 15 times larger than that of the Grand Duchy, whose territory spans a mere 2,600 square kilometressquare miles).
The average price in London was 328,000 euros (390,000 dollars), according to Era Immobiler, which has 1,250 property sales offices across Europe.
The picturesque Swiss city of Berne came second in the rankings with an average sale at 421,000 euros (505,211 dollars), followed by Madrid at 408,120 euros (489,554 dollars) and Dublin at 330,000 euros (396,107 dollars).
The French capital is in eighth place, according to the survey, with an average sale price in Paris of 261,180 euros (313,459 dollars).
At the other end of the scale, Brussels is the cheapest capital for housing (182,211 euros, 218,701 dollars), narrowly beating Athens where an average property sells for 192,000 euros (230,425 dollars).
"The surge in prices should slow down by the end of 2005, except in Spain where sharp rises are still expected," according to Era Immobilier.
Interest rates are expected to rise in most European countries, "thereby slowing investments," the annual study said.
Some 65.2 percent of Europeans owned their own property in 2004, compared with 62 percent the previous year. Spain has the highest rate of home ownership at 87 percent, followed by Ireland at 81 percent and Belgium at 78 percent.
Switzerland comes last with home ownership at only 36.5 percent, while France is also below average at 57 percent, two percent up from last year.
By: N. Peter Kramer
