Housing price fluctuations (apartments and houses combined) from 2017 to 2025; Credit: Fichier de la Publicité Foncière, STATEC - Housing Observatory, Registration, Estates and VAT Administration (2010-2025)

On Thursday 25 September 2025, Luxembourg’s Housing Observatory and STATEC published their eighteenth analytical report, presenting an overview of developments in residential real estate activity, sale prices and advertised rents during the second quarter (Q2) of 2025.

The report highlighted a sharp rebound in real estate and land market activity in Q2 2025, following a marked slowdown in Q1 2025. This resurgence was linked to the expiry of extended tax measures at the end of June and was accompanied by a moderate increase in sales prices and a slight fall in advertised rents.

Number of housing sales

After the slowdown observed in Q1 2025, activity accelerated sharply in Q2 2025. Compared with Q1, the number of transactions increased significantly in every segment, driven by the anticipated expiry of temporary tax measures on 30 June 2025. In year-on-year terms, transactions were up by 72.9% for existing apartments and 93.7% for existing houses compared to Q2 2024. 

The off-plan apartment segment recorded an even stronger recovery, with sales increasing by 126.0% year-on-year. Despite this rebound, activity in this segment remained only half the average level recorded before the crisis (2017–2021).

Sales of existing apartments reached 1,575 in Q2 2025 — the highest quarterly figure since 2007 and a sharp increase from the more subdued volumes in Q1 2025. By contrast, sales of off-plan apartments remained more limited despite special tax incentives, reflecting weaker demand than in the existing property market.

Real estate prices

Residential property prices (apartments and houses combined) increased by 4.5% compared to Q2 2024, moving closer to the long-term annual trend of +5.0% observed between 2010 and 2025.

Compared with Q1 2025, however, the rebound in activity appears to have exerted upward pressure on prices. The Housing Observatory stressed the need to monitor developments in Q3 2025, when activity may ease again after the tax measures expired.

Price changes varied across segments over the twelve months to Q2 2025 with +2.8% for off-plan apartments, +3.2% for existing apartments and +7.1% for existing houses.

The report noted that these figures are based on notarial deeds recorded in Q2 2025, reflecting sales agreements signed mostly before the end of May 2025.

Advertised rents

Advertised apartment rents fell by 0.7% compared with Q1 2025 and by 2.2% compared with Q2 2024, marking a decline after the stabilisation observed throughout 2024. At the same time, consumer price inflation returned to levels in line with the long-term average: +1.9% between Q2 2024 and Q2 2025. Advertised rents for furnished rooms moved in the opposite direction, rising by 1.7% year-on-year.

For sitting tenants, rent increases during leases were moderate. According to STATEC, the rent index rose by 1.8% between Q2 2024 and Q2 2025, broadly matching consumer price inflation.

The report is based on data collected by STATEC and the Housing Observatory, in collaboration with the Registration Duties, Estates and VAT Authority (AED), on housing activity and sales prices (from notarial deeds). It also used data provided by the real estate portal Immotop.lu on advertised housing rents (from real estate listings).