Luxembourg’s property market experienced a strong recovery in the second quarter of 2025, according to issue no. 18 of “Housing in Figures” published by the Housing Observatory and Statec. The housing ministry explains that this momentum is largely due to the expiry of tax measures extended until 30 June 2025.
This surge in activity has affected both transactions and prices. The authors of the report note that “activity on the property and land markets has risen very sharply,” while house prices are recording an annual increase close to their long-term trend. Ten figures help to measure the extent of this.
Metholodogy: Since 2014, the Housing Observatory and Statec have jointly published “Housing in Figures,” a study based on registered notarial deeds, property advertisements and statistical models. It covers prices, transaction volumes and rents in order to monitor developments in the residential market in Luxembourg.
+4.5% on house prices
Between the second quarter of 2024 and the second quarter of 2025, house prices in Luxembourg–houses and flats combined–rose by 4.5%. According to the Statec dossier, this increase is in line with the trend observed over the long term, with an average rise of around 5% per year between 2010 and 2025.
+72.9% sales of existing apartments
In the second quarter of 2025, sales of flats already built and resold on the secondary market rose by 72.9% compared with the second quarter of 2024. This type of transaction therefore concerns homes that are not new, unlike sales with a future state of completion (Vefa). According to the Statec file, “activity in this segment is quite clearly above the average for the pre-crisis years,” i.e. compared with the 2017-2021 period.
+93.7% sales of existing homes
Between the second quarter of 2024 and the second quarter of 2025, sales of single-family homes already built and resold on the secondary market increased by 93.7%. These transactions therefore involve homes that are not new, unlike projects sold off-plan. The housing ministry points out that this volume far exceeds the average levels observed between 2017 and 2021, the reference period before the recent property crisis.
+126% sales of flats under construction
The market for flats under construction grew by 126% between the second quarter of 2024 and the second quarter of 2025. However, the Statec study states that “the number of transactions is still less than half the average for the pre-crisis years,” reflecting a structural slowdown in new compared to existing.
1,575 sales of existing apartments
In the second quarter of 2025, 1,575 sales of existing flats were recorded. According to this edition of the survey, this is “the highest number of transactions recorded in the Land Registry” since 2007. This record confirms the renewed vigour of the secondary market.
€1.26bn worth of flat transactions
Between April and June 2025, the cumulative value of all flat sales in Luxembourg reached around €1.26bn. This figure includes sales of both existing flats and flats under construction. According to the housing ministry, this is an increase of 85.5% compared with the second quarter of 2024, illustrating the scale of the upturn in activity seen in the market.
+7.1% on existing house prices
Over the last 12 months, existing houses have seen their prices rise by 7.1%. Existing flats rose by 3.2% and flats under construction by 2.8%. The housing ministry notes that these differences reflect greater pressure on the supply of houses.
348 sales in future state of completion (Vefa)
The number of sales of flats in the future state of completion (Vefa) reached 348 units in the second quarter of 2025. According to the study, the weakness of the new-build market is due more to limited demand than to a lack of projects. Prices have fallen less than in the existing market, which is holding back buyers.
-2.2% on advertised rents for apartments
The index of advertised rents for flats falls by 2.2% between the second quarter of 2024 and the second quarter of 2025. The ministry’s press release points out that this fall comes after a stabilisation in 2024. At the same time, in-place rents are rising by 1.8%, a rate close to inflation.
June 2026 for the inclusion of commuting time in valuations
Commuting time will become a central variable in property valuations from June 2026. The Statec study explains that “travel time could be a more relevant variable than distance,” as it takes account of road congestion. This reform is included in bill no. 8082 on property tax.
This article in French.
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