Luxembourg's construction sector faced mounting pressure in 2023 and 2024, with official data confirming a decline in employment and a sharp increase in bankruptcies.

In response to a parliamentary question from MP Alexandra Schoos of the Alternative Democratic Reform Party (ADR), the government has provided a detailed snapshot of the slowing real estate and construction sector.

The data, covering 2020 to 2024, shows that just under 76,794 notarial property acts were registered. Of these, 32,529 were for the sale of existing homes and 11,276 for off-plan properties. Transaction activity showed a notable shift in the first half of 2025, with a 112% increase in acts for off-plan properties compared to the same period in 2024, rising to 757.

The figures for building permits indicate a sustained downturn in new housing construction. After a weaker 2023, only 4,025 permits for new homes were issued in 2024. The first half of 2025 suggests a continuation of this trend, with just 1,579 permits granted. In contrast, conversion projects saw a significant surge, with permits more than doubling from under 5,000 in 2020 to 12,223 in 2024.

Regarding employment, Ministers Claude Meisch, Gilles Roth, and Lex Delles did not provide precise 2024 figures in their response. However, the data for 2023 showed 52,357 people working in the construction sector – a decrease of almost 600 from 2022 – alongside the creation of 306 new companies. Paul Nathan, Vice-President of the Chamber of Skilled Trades and Crafts, claimed in an August interview with our colleagues from RTL Radio that around 4,600 jobs were lost in the sector in 2024.

The number of bankruptcies also rose markedly, with 160 recorded in 2023 and 200 in 2024, significantly higher than in previous years.