RTL Today - STATEC report: Average size of new homes in Luxembourg falls to record low

Soaring mortgage rates are forcing prospective homeowners in Luxembourg to buy smaller properties, leading to a record reduction in the average size of new flats and houses, a STATEC report has found.

Newly built homes in Luxembourg are getting smaller, according to a recent report from the National Institute of Statistics and Economic Studies (STATEC).

The finding, published in STATEC's economic update, is based on sales deeds for new flats, which show a clear trend towards reduced living space. The average new flat has shrunk to approximately 77m² since 2023, down from an average of 82m² over the preceding decade. This decline was particularly sharp in the first half of 2025, when the average area dropped to 71m² – a figure STATEC notes as "the lowest level on record to date."

The institute attributes this downsizing to the sharp rise in mortgage rates, which has significantly increased the cost of property ownership. In response, households have been forced to adjust their expectations and purchase smaller homes to stay within their budgets.

This trend is not limited to flats. The average size of new houses has also fallen sharply, based on data from planning permissions. Until mid-2022, the average house plan covered around 250m². Since the summer of 2022, however, that average has dropped below 220m².