According to the government, the number of new apartment sales in Luxembourg has experienced a year-over-year drop, which is in line with the decline in building permits recorded during that same time period.

In early June, the European statistics agency Eurostat confirmed that building permits in the Grand Duchy had fallen by 28% over the past year, the largest decline in the Union. This slowdown in the property and housing markets has now been confirmed by other national authorities.

In 2023, for example, the property registry reported a significant fall in transactions compared to the previous year. Romain Heinen, the director of the Registration Duties, Estates and VAT Authority, confirms that there has been close to a 25% drop in sales registrations for new accommodations from 2022 and between 25 and 30% fewer housing VAT claims.

Revenue from registration fees has therefore clearly fallen in 2023 compared to the previous year.

Heinen points out that in May 2022, this revenue amounted to €224 million, whereas the figure was only €127 million in May 2023. However, he also draws attention to the fact that the acquisition of finished homes is doing better than the purchase or construction of new homes.