The European centre for statistics (Eurostat) confirmed house prices in the Grand Duchy dropped by 3.1% compared with the previous quarter, reversing a strong spring performance and presenting the largest quarter-on-quarter decline among all EU Member States.
From an annnual perspective, prices in Luxembourg were a marginal 1.2% higher than a year earlier, highlighting a slowing of the Grand Duchy’s real estate market – echoing earlier reports from atHome, and the Housing Observatory.
However, in contrast with Luxembourg’s quarterly decline, house prices in the EU and in the euro area continue to show an upturn in the period before Q3 2025, with EU prices rising in preceding quarters and posting an average annual increases of 5.1%.
The downturn is also in contrast to neighbouring regions. In Belgium, prices rose by 2.4% over the quarter and were 3.7% higher than a year earlier. Germany posted a quarterly increase of 1% and annual growth of 3.3%, while France, despite a prolonged slowdown, still recorded a 1.6% quarterly rise, with prices up 0.7% year-on-year.
Luxembourg’s real estate slowing follows a strong second quarter, when prices jumped by 4.4%. That surge was widely attributed to buyers rushing to complete transactions ahead of expiring tax incentives.
Only a small number of Member States, including Finland and Slovenia, recorded quarter-on-quarter drops, while Finland remained the only country where prices were lower than a year earlier.
Elsewhere in the EU, price growth remained strong, particularly in eastern and southern Europe. Hungary, Portugal and Bulgaria all posted double-digit annual increases.
