Decrease in Real Estate Prices in Luxembourg in the second quarter of 2024

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3 July 2024

In the second quarter of 2024, atHome reports a continued decrease in real estate sale prices, though less pronounced than in the previous quarter. The national average shows a decrease of -3.8%, compared to a -9.3% drop observed in the first quarter of 2024. This trend is noticeable across Luxembourg, with significant regional variations.

Apartment prices show a decrease of -3.3%, while house prices see a more significant reduction of -4.9%, reversing the trend observed at the beginning of the year. Both the old property market (-3.7%) and the new property market (-4.1%) are experiencing similar declines, confirming an overall downward trend in prices.

Price difference based on Energy Class

Prices vary significantly depending on the energy class of the properties. According to Immotop, a property with an energy category G rating had an average cost of €7,225/m², while a category A property had an average price of €9,661/m², representing a difference of €2,436/m². This disparity reflects the growing importance of energy performance in property valuation.

Regional Evolution of Real Estate Prices

Central Region: With an average price of €9,816/m², the Central region records a decrease of -2.4%. Apartment prices decrease by -2.1%, while house prices drop by -3.3%.

Northern Region: With an average price of €5,783/m², this region shows the smallest decrease at -0.6% on average. Notably, apartment prices increase by +2.1%, contrasting with a -3.3% decrease for houses.

Southern Region: In this region, average prices are €6,427/m², representing the most significant decrease at -6.1%. Apartment prices fall by -6.4%, closely followed by a -5.6% drop in house prices.

Eastern Region: With an average price of €6,856/m², the Eastern region sees a decrease of -2.5%. Apartment prices slightly increase by +0.9%, while house prices drop by -5.6%.

Western Region: With an average price of €7,227/m², this region shows the largest average decrease at -6.6%, with a -6.3% drop for apartments and a -7.0% decrease for houses.

Focus on Luxembourg City

In Luxembourg City, Immotop reports a downward trend in average prices, reaching €12,641/m², a decrease of 2.7% compared to the previous quarter. The most expensive neighborhoods remain Belair (€14,828/m²), Limpertsberg (€13,312/m²), and Hollerich (€12,893/m²). Conversely, the neighborhoods of Muhlenbach (€10,368/m²) and Beggen (€10,179/m²) offer the most affordable prices in the capital.

Market Outlook

The interest rate cuts initiated in May 2024, coupled with government tax incentives, are revitalizing the real estate market. The anticipated recovery for 2025 looks promising, and signs of stabilization could begin to manifest even now.