Property prices are down compared to the second quarter of 2025, having fallen by an average of 2.2%, according to figures released by the Housing Observatory.
This decline is explained by price levels and the exceptional activity recorded in the second quarter of 2025. Activity had rebounded following the end of tax measures on 30 June 2025.
The decline applies across all market segments, although it is less pronounced for already-built apartments (-0.6%). Prices for already-built houses have fallen the most (-3.7%), followed by off-plan (VEFA) apartments (-2.5%). These price drops coincide with a decline in activity over the same period.
A total of 1,274 flats were sold in the second quarter of 2026, representing a year-on-year decrease of 33.9%. Of these sales, only 225 were off-plan sales (VEFA). This is 68% lower than the pre-crisis average (2017-2021).
The housing market also remains below pre-crisis levels, according to the report, with 709 transactions in the second quarter of 2026.
Finally, advertised apartment rents rose by 5.8% year-on-year. This increase is "significantly higher than general inflation", wrote the Housing Observatory. Inflation reached 2.4% over the same period. This further acceleration can be explained by the lack of new construction and continued strong demand in the Luxembourg real estate market.
