-3.6% for new apartments and -0.9% for existing houses and apartments: the decline in prices is confirmed on the Luxembourgish real estate market. And it is far from negligible, as these figures reflect price trends over just three months. The drop was expected after the “peak” of the second quarter of 2025.
The end of the housing incentive package coincides with this recent price decrease. To recall, between the end of 2022 and the end of 2023, prices had already fallen significantly in the Grand Duchy, before rising again, boosted by government aid.
Since the end of the fiscal measures, the market has regained its footing and prices are adjusting accordingly. While demand remains strong, wages and interest rates have not changed much in recent months – and neither has purchasing power. The only lever left is, therefore, prices. And this decline did not start yesterday.
For new apartments (off-plan sales) and existing houses, the decline began as early as the end of the second quarter of 2025. In the first case, the average price per square meter even fell back below the €10,000 mark. During the summer, it was still at €10,411; it is now €9,863.
In its latest market analysis, the atHome group notes that the annual trend is still upward – and that is true. However, this increase occurred in a very specific context after the announcement of a (generous) housing aid package at a time when the market was essentially stalled.
The trend almost immediately reversed, and after a year and a half of decline, prices rose again until reaching their peak last summer. With no new aid measures on the horizon, the price drop observed at the end of 2025 will likely continue into 2026. The spokesperson for property developers had already hinted at this trend last month on the program La Bulle Immo.
Rents continued to evolve towards the end of 2025, reaching relatively stable levels. Renting a house now costs an average of €3,296 per month, representing an increase of 2.7% compared to the end of 2024. For apartments, the average rent is €1,864 per month – a decrease compared to the third quarter of 2025 (-1.3%) but still an increase compared to the average rent at the end of 2024 (+2.2%).
Over the course of a year, house rents increased significantly in the west (+11.6%) but fell by a similar proportion in the east (-10.6%), balancing out the national average. It is also worth noting that rents rose, though to a lesser extent, across all segments in the south and central parts of the country. For example, renting a house or an apartment in the south became, on average, 3.2% more expensive between the end of 2024 and 2025.
