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 26 March 2026, Luxembourg’s Housing Observatory and STATEC published their nineteenth analytical report, presenting an overview of developments in residential real estate activity, sale prices and advertised rents during the second quarter (Q4) of 2025.

Activity declines, after spring peak linked to tax incentives

The fourth quarter of 2025 confirmed the trend observed in the previous quarter regarding the number of property transactions: activity continued to decline in the absence of a temporary fiscal effect. The decline in Q4 affected all segments but was particularly marked in the new-build market, confirming the structural fragility of this segment. The number of transactions fell to 149 sales of apartments under construction in the fourth quarter of 2025, compared with 326 in the previous quarter. In contrast, the existing property market appeared more resilient, with activity levels close to pre-crisis standards despite the recent decline.

After strong volatility in 2025, prices stabilise

Following a marked increase in the second quarter of 2025 (+4.4% compared with the first quarter) and a subsequent decline in the third quarter (-3.5%), the aggregated housing price index recorded a slight increase of +0.4% in the fourth quarter of 2025. Over twelve months, the change was almost zero (+0.1%). This stabilisation confirms that the strong activity in the second quarter, linked to anticipation of the end of fiscal measures, had exerted temporary upward pressure on prices, which subsequently eased.

Contrasting price developments across market segments

In the last quarter of 2025, prices evolved differently according to segment:

• +2.0% for apartments under construction compared with the fourth quarter of 2024, due to the strong price increase observed in the second quarter of 2025;

• +0.2% for existing apartments over twelve months;

• -1.0% for existing houses over twelve months.

The role of accessibility to Luxembourg City

Between 2022 and 2025, the prices of existing apartments experienced a marked and widespread decline across Luxembourg. This correction affected both the capital and peripheral areas, with often significant reductions: around -11% in Luxembourg City between 2022 and 2025, up to -18% in some towns.

Despite the strong correction, the spatial hierarchy remains stable: proximity and accessibility to the capital continue to strongly influence prices. Differences between municipalities persist, reflecting notably differences in land prices. Thus, the further the travel time to the capital, the lower the prices.

This trend suggests that macroeconomic factors (financing conditions, inflation, changes in demand) dominated local dynamics, affecting the various municipal markets relatively uniformly.

Access to sale price statistics

Current statistics, based on notarial deeds, are available with a several-month delay. Work is underway to produce price indices on a monthly basis and with shorter delays.

While this development is technically feasible, it poses methodological challenges. The segment of existing apartments, characterised by a high number of transactions, would allow reliable estimates. In contrast, for apartments under construction, the low sales volume leads to high volatility in monthly indices and more frequent revisions. The use of incomplete data (approximately 16% of deeds are initially missing) introduces greater bias in this segment.

Therefore, a balance must be found between speed of publication and statistical robustness, in order to guarantee the quality of the indicators, particularly in a still fragile market context. If faster publication is feasible, it remains more robust for existing dwellings. For new-build properties, low activity and unavoidable delays complicate reliable interpretation of price developments.

Rents for apartments rise in line with inflation

In the fourth quarter of 2025, announced rents for apartments (from property listings recorded by the Housing Observatory and provided by the partner Immotop.lu) continued to rise over twelve months, with an increase of +3.0% compared with the fourth quarter of 2024. This marked a slight acceleration compared with the previous quarter and is now at a level very close to national consumer price inflation (+2.9%).

It should be noted that these indicators concern rents requested for new tenancy contracts. Existing rents evolve more moderately: according to STATEC statistics, the rent index increased by +1.4% over the same period, considerably lower than both announced rents and inflation.