After more than a decade of steep increases, Luxembourg’s market for residential building land has experienced a significant correction. According to the latest report from the Housing Observatory, prices fell by 14.9% between 2022 and 2024, before stabilising in 2025.
Following a dramatic rise of 150.4% from 2010 to 2022, land prices decreased by 5.4% in 2023, then by a further 10% in 2024. By 2025, this trend had largely come to a halt, with the price index dipping by just 0.1% – signalling a stabilisation of the market.
This correction was accompanied by a marked decline in sales activity. The number of transactions dropped from 731 in 2022 to only 326 in 2023, before gradually recovering to 565 in 2024 and 612 in 2025.
Despite the overall dip in prices, substantial differences persist between regions. From 2023 to 2025, the median price in Luxembourg City stood at €259,159 per are, compared to €90,582 per are nationwide and €45,981 per are in the north of the country.
The residential land market appears to have absorbed most of the correction since 2022. By 2025, land prices had almost levelled off, while residential property prices rose by a modest 1.6% over the same period. Nevertheless, the correction has not made land affordable by Luxembourg standards, with prices still at historically high levels.
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