Analysis of Real Estate Trends in Q4 2024: Overview and Outlook
As 2024 comes to a close, real estate prices in Luxembourg have shown signs of stabilization, according to the latest published data. This report highlights contrasting developments across different market segments and regions while offering positive prospects for 2025.
National price stabilization
The fourth quarter of 2024 confirms an overall stability in real estate prices across Luxembourg, with minimal fluctuations observed between 2023 and 2024:
- Old apartments show a slight decrease of -0.5%, with an average price of €7,783/m².
- New apartments record a marginal decline of -0.3%, reaching €9,696/m².
- Old houses experience a sharper drop of -2.6%, with an average price of €5,707/m².
Despite a still-limited transaction volume, these figures signal a welcome calm after the turbulence of recent years.
Significant regional disparities
Luxembourg’s real estate market reveals notable variations across regions:
- West region: The steepest declines are recorded, with -6.4% for old houses, -4.9% for old apartments, and -6.3% for new apartments.
- North region: Contrary to the overall trend, prices for old apartments rise by +4.5%.
- East and South regions: Prices for old apartments decrease by -3.7%.
- Central region: Stabilized with a moderate increase of +1.2% for houses and +1.1% for old apartments, while new apartments see a decline of -5.8%.
The rental market: A gradual slowdown
Apartment rents have risen year-on-year (+3%), with a national average of €1,824 per month, while house rents have seen a modest increase of +1.8%. However, Q4 2024 marks a drop in rental prices with decreases of apartment prices of -1,9% and -3,7% for houses prices.
Positive factors for 2025
Several elements are supporting a gradual recovery in the real estate market:
- Extension of tax measures: Tax advantages for real estate transactions have been extended until June 2025, encouraging buyers to move forward with their plans.
- Attractive interest rates: Successive reductions in key interest rates by the ECB and the Fed are improving access to financing.
While the resale market remains stable, the new construction segment continues to face pressure, hindered by uncertainties related to costs and delivery timelines.
A positive signal for buyers and sellers
Experts predict that 2025 could be a pivotal year, marked by renewed activity in the resale market and a gradual recovery in transactions for new apartments. However, to take advantage of current conditions, it is advisable to act swiftly, particularly with the June 30, 2025 deadline for tax benefits.
Whether you’re a buyer or seller, now is the ideal time to plan your real estate projects. Please contact us for a property appraisal or personalized advice.
