A new analysis of 25,000 property listings reveals Luxembourg's real estate prices are rising at historically consistent rates after years of volatility, with existing homes and new flats leading the increase.
A recent analysis of approximately 25,000 listings on atHome, Luxembourg's largest real estate platform, indicates a renewed uptick in housing prices across the Grand Duchy. While the market shows signs of recovery, off-plan properties (VEFA) continue to face challenges, according to industry observers.
The Chamber of Real Estate struck a cautiously optimistic note, acknowledging price increases across all regions and property types while emphasising there remains "significant room for improvement" for off-plan developments.
Mathieu Toussaint of atHome's management team provided historical context: While Luxembourg traditionally saw annual price growth around 5%, the 2018-2020 period experienced surges exceeding 10%. After stabilisation in 2021 and declines in 2022-2023, 2024 has brought equilibrium.
"We're now observing a slight increase for 2025, but crucially within historical growth rates," Toussaint noted, characterising this as "a return to a more typical market."
The past 12 months reveal stark variations across property categories. Existing houses lead price growth at 4.6%, bringing the average price to €6,138 per square metre. Newly constructed flats follow closely with a 4.3% increase, now averaging €10,411 per square metre. By contrast, existing flats show only marginal movement at 0.7%, maintaining an average of €8,077 per square metre.
It is important to note in this context that listed prices may not reflect final transaction values.
The off-plan property market presents particular difficulties, with too few completed projects in the past 12 months to establish reliable price averages, according to atHome's analysis.
Toussaint emphasised the need for greater capacity in this sector. "As in any market, supply and demand dynamics apply," he explained, adding, "With demand recovering but supply remaining constrained, we're seeing natural price pressure." Toussaint stressed that meeting returning demand requires new properties entering the market.
Jean-Paul Scheuren, Vice-President of the Chamber of Real Estate, placed partial responsibility on financial institutions, criticising banks for discouraging off-plan purchases due to perceived risks. He highlighted the Chamber's efforts to build confidence through initiatives like charte.lu, which identifies vetted real estate professionals.
However, it should be noted that future mortgage approvals may depend not only on market trends but also on broader geopolitical stability.
