A steady decline in lending rates in Luxembourg is sparking hopes of a revival in the property market, as new figures from the Central Bank reveal.

The latest data from the Luxembourg Central Bank (BCL) highlights a continued decline in lending rates, offering potential relief to residents planning property investments.

In November 2024, interest rates on mortgages dropped further, with borrowers securing slightly more favourable terms during the autumn, according to figures published on Monday, 6 January, by the BCL.

Fixed-rate mortgages for terms exceeding ten years averaged 3.44%–the lowest rate recorded in 2024. By comparison, the fixed rate stood at 4.16% in November 2023. Variable mortgage rates also saw a decline, averaging 4.22% in November 2024, down from 4.73% a year earlier.

For shorter-term financing, such as consumer credit for loans under five years, the average rate was 4.77% in November 2024.

The property market in Luxembourg has shown signs of recovery in recent months. According to the National Institute of Statistics and Economic Studies (STATEC), the number of property sales has started to rise again, though transactions remain below pre-rate hike levels.

Minister for Housing Claude Meisch commented on the developments, stating that property developers need to take action. "The government can provide temporary support through tax measures, but the supply side must also adjust. Developers need to make an effort on their prices," Meisch said in an interview with RTL on Monday.