Luxembourg’s property market rebounds as prices keep climbing

This week, Statec and the Housing Observatory delivered a clear message: housing prices in Luxembourg are on the rise once more. Between the second quarter of 2024 and the second quarter of 2025, average prices increased by 4.5% across all housing types, driven largely by tougher negotiations.

A monthly payment of more than €6,000 for a house

The Housing Observatory’s latest data, covering the period from 1 July 2024 to 30 June 2025, provides a detailed price range:

• Older flats: €7,800 per m2
• New flats (off-plan): €10,028 per m2

As always, location plays a decisive role. In the canton of Luxembourg, "the average price of a house is around €1,294,000, 67% higher than the average in the north of the country," the report notes.

For buyers, the financial burden is stark. With an interest rate of 3.2% – roughly the going rate in Luxembourg in July – a €1.3 million loan (without a deposit) translates into a monthly repayment of around €6,301 over 25 years. Even with a 20% down payment, reducing the loan to €1.04 million, monthly instalments would still reach €5,041 – a heavy strain for most households.

Read also : Breaking down the real cost of buying property in Luxembourg

Purchases and sales pick up pace

While prices are climbing, the market itself has also regained momentum. Between spring 2024 and spring 2025, the number of transactions surged:

• +72.9% for existing flats
• +93.7% for existing houses
• +126% for flats under construction (VEFA)

In the second quarter of 2025 alone, 1,923 apartment sales were recorded; the highest figure since 2007, when transactions began to be tracked in the Property advertising registry. Most of these sales (1,575) involved existing flats.

Flats under construction remain more sluggish. Just 348 sales were recorded in the same period – double last year’s volume, but still far below the levels needed to return to pre-crisis averages.