The Real Estate Market in Luxembourg in Q1 2025: A Recovery in Sale Prices and Rent Adjustments
The real estate market in Luxembourg in Q1 2025 marks a turning point, according to the latest statistics from atHome. After a period of stabilization, sale prices have started to rise slightly, while the rental market is undergoing adjustments. This evolution follows the noticeable increase in sales observed in the fourth quarter of 2024.
Increase in Sale Prices for Houses and Apartments
After several months of stabilization, the prices of older houses have risen by 3.5% compared to the previous quarter, indicating renewed interest in this type of property. On the other hand, the market for older apartments remains almost stable, with a slight increase of 0.1%. New apartments continue to follow an upward trend, with an increase of 1.2%. These trends will need to be monitored in the coming months to assess their sustainability. The average price of an older house in Luxembourg is now €5,905 per m², while an older apartment costs an average of €7,790 per m².
Price Fluctuations by Region
Prices for older apartments have seen some declines, except in the eastern and northern regions of the country, where a slight increase has been observed. For new apartments, the situation is more mixed: prices are falling in almost all regions, except in the south, where the market remains relatively stable.
Source: atHome.lu
Rental Market: A Drop in Rents at the Start of 2025
After an increase in 2024, house rents have decreased for the second consecutive time, with a drop of 1.8% compared to the last quarter of 2024. Apartment rents continue their downward trend, recording a decrease of 2.5%. This phenomenon signals a gradual rebalancing of the rental market after several successive increases.
Rent Evolution by Region
Rents in Luxembourg vary by region. The south and north are experiencing notable increases. Indeed, house rents have risen by 4.6% in the south and 2.2% in the north, while apartment rents have increased by 2% and 0.2%, respectively. Conversely, some regions, such as the center and west, show declines. The center has seen a decrease in house rents (-0.4%) and apartment rents (-1.6%), while the west has experienced a significant drop in house rents (-9.9%).
A Recovery Supported by Favorable Conditions
The current fiscal measures and competitive interest rates support the recovery of the real estate market. These favorable conditions suggest the continuation of the recovery that began at the end of 2024. The sales market remains dynamic, and the rental market continues to stabilize.
