Interest rates on property loans in Luxembourg have continued to decline since the start of 2025, signalling a potential revival in the housing market after years of rising costs.
According to the Luxembourg Central Bank (BCL), the variable mortgage rate dropped further in February, falling to 3.84% from 3.88% in January. Fixed rates also decreased, moving from 3.39% to 3.31% over the same period.
The trend extends to consumer credit, where interest rates fell from 4.82% in December 2024 to 4% in recent data.
These reductions could restore confidence among homeowners and prospective buyers in Luxembourg’s tense real estate market.
