Luxembourg Building Land Prices Stabilise with 0.1% Decline in 2025

On Tuesday 29 September 2026, the Housing Observatory (Observatoire de l'Habitat) - under the supervision of Luxembourg's Ministry of Housing and Spatial Planning - published its Analytical Report No. 26 on the evolution of building land prices in Luxembourg.

After rising sharply between 2010 and 2022, building land prices in Luxembourg underwent a marked correction in 2023 and 2024. The report shows, however, that in 2025 the residential land market entered a phase of stabilisation: the building land price index remained virtually unchanged year-on-year (-0.1%), while housing prices returned to slight growth.

The reversal in the property market from 2022 onwards resulted in a sharp contraction in land transactions. Following 731 sales of building land in 2022, only 326 transactions were recorded in 2023, representing a decrease of 55.4%. Activity subsequently recovered, with 565 transactions in 2024 and 612 in 2025. Nevertheless, this recovery remains gradual and the number of transactions remains below the levels observed before the market reversal.

Price developments followed a comparable trajectory, but with a lag. After a cumulative increase of 150.4% between 2010 and 2022, building land prices fell by 5.4% in 2023 and then by 10.0% in 2024. Over the entire 2022-2024 period, the decline therefore reached 14.9%. In 2025, the index was practically stable (-0.1%).

This development contrasts with that of housing, whose prices increased slightly in 2025: +1.6% for all housing, +1.3% for existing housing and +1.9% for new housing. Construction costs, meanwhile, increased by 1.8%.

According to the ministry, the recent correction has not profoundly changed the geography of land prices. The updated analysis confirms a very stable spatial structure, centred around Luxembourg City and characterised by a gradual decline in prices as the distance from it increases.

Over the 2023-2025 period, six major geographical areas can be distinguished. The median price reached €259,159 per are in Luxembourg City, compared with €139,652 per are in the first ring and €105,987 per are in the second ring. It stood at €97,231 per are in the third ring, €67,219 per are in the central-north and €45,981 per are in the north. At national level, the median price amounted to €90,582 per are, for a median surface area of 5.19 ares.

The ministry noted that the stability of this segmentation shows that the cyclical fluctuations of recent years have not called into question the main territorial determinants of land value, particularly accessibility, proximity to jobs, facilities and services, as well as the pressure exerted on available land.

The analysis also covers the Development and Attraction Centres (Centres de développement et d'attraction - CDA), which are expected to play an important role in the country's territorial organisation and future residential development. The results show that several of these centres have price levels higher than those expected in view of their geographical environment.

This is notably the case for Nordstad, where the median prices observed are approximately 38% higher than the median for its reference area, as well as Esch-sur-Alzette, with a difference of approximately 29%. Positive differences are also observed, to varying degrees, in Mersch, Remich, Junglinster, Mondorf-les-Bains, Echternach, Dudelange, Wiltz and Clervaux. The ministry noted that these differences constitute orders of magnitude intended to inform the territorial analysis and should be interpreted with caution, particularly when the number of transactions available at local level is limited.

According to the ministry, all the results are based on transactions recorded in the land registry and on a hedonic index developed by the Housing Observatory, making it possible to compare price developments for land with comparable characteristics.

The full report is available (in French) here.