STATEC Hedonic Apartment Sale Price Index (12-Month Change); Credit: STATEC

On Wednesday 24 June 2026, Luxembourg's Housing Observatory (Observatoire de l'habitat) published its twenty-fifth analytical report, presenting an overview of developments in residential property transactions, sale prices and advertised rents during the first quarter (Q1) of 2026.

Property market returns to more normal levels

After the strong recovery observed in 2025, largely driven by temporary tax measures, Luxembourg's residential property market appears to have returned to a more normal rhythm. According to the report, transaction volumes have stabilised at levels significantly higher than those recorded during the sharpest phase of the housing market slowdown between 2023 and early 2024.

The market for existing dwellings continued to recover. Compared with the first quarter of 2025, transactions increased by 9.4% for existing apartments and 11.5% for houses. Existing apartment sales reached 968 transactions, approaching the average recorded before the property market downturn.

The market for apartments under construction (VEFA), however, remained weaker. Transactions fell 18.2% year-on-year to 207 sales, remaining well below pre-crisis levels.

House prices continue to stabilise

The report notes that residential property prices continued to stabilise following the volatility seen in 2025.

According to the Statec hedonic house price index, the overall residential property price index increased by 0.7%compared with the previous quarter and by 1.7% over the past twelve months.

Price developments varied across market segments:

  • +3.0% for existing houses;
  • +0.9% for existing apartments;
  • +0.9% for apartments under construction (VEFA).

The report also notes that annual house price growth is now broadly in line with national inflation, which reached 1.6%over the same period.

Rental market remains under pressure

Unlike the sales market, Luxembourg's rental sector continued to experience stronger price increases.

Advertised apartment rents rose by 0.5% during the quarter and 4.4% over twelve months, significantly outpacing both inflation (1.6%) and residential property sale prices.

Advertised rents for furnished rooms, which now account for around 18% of the rental market, increased even faster, rising 4.7% year-on-year.

The report notes that these figures relate to asking rents for new tenancy agreements. Existing rents continued to increase much more moderately, with the Statec rent index rising by 1.4% over the same twelve-month period.

The full report is available at the following link: https://logement.public.lu/fr/publications/observatoire/rapport-analyse-25.html.