A more stable property market in Luxembourg in the second quarter of 2026

In the second quarter of 2026, the Luxembourg property market showed contrasting trends across different segments.

Older properties are seeing a slight rise (+2,7 %) compared with the previous quarter, whilst older flats continue to adjust (-1,4 %). New-build flats, meanwhile, have seen a slight increase (+0,1 %), reflecting a degree of stability in the market as a whole. Whilst the changes observed remain modest, they confirm that the various segments continue to develop along distinct trajectories.

In the rental market, rents continue to rise, for both houses and flats. Year-on-year, they have increased by 6,6 % for houses and 4,2 % for flats, confirming that pressures remain in the rental market against a backdrop of sustained demand.

Finally, regional trends highlight persistent disparities between different areas. Depending on the region and market segment, these variations can differ significantly, illustrating the importance of local dynamics in the evolution of the Luxembourg property market.

This report therefore provides an overview of the market prior to the announcement, the 16 July 2026the «Booster for residential construction» by the Luxembourg Government. This package of measures, designed in particular to support construction, investment in rental properties, home ownership and the development of affordable housing, could help to shift the market balance over the coming quarters.

Future editions of this study will make it possible to assess any effects.

Sales: contrasting trends across different segments

Change in advertised sales prices per square metre per quarter

Sales prices varied across different segments in the second quarter of 2026. Prices for older houses rose slightly compared with the previous quarter, whilst prices for older flats continued to adjust. After several quarters of decline, prices for new flats showed a slight increase (+0,1 %), a sign that the situation is stabilising.

Change in advertised sales prices per square metre by region : persistent disparities between regions

House prices continue to trend differently across regions. The East stands out with a slight rise in prices for older homes (+0,3 %) and older flats (+1,1 %), whilst the North has seen the sharpest fall in prices for older homes (-5,9 %). The other regions show more modest variations, confirming that trends remain largely influenced by local circumstances.

Rental market: rents continue to rise

Change in advertised rents per quarter

Rents continued to rise in the second quarter of 2026. Houses saw the biggest increase (+13,4 %), whilst flats are continuing to rise at a more moderate rate (+3,3 %). Over the past year, rents have continued to rise (+6,6 % for houses and more4,2 % for flats), reflecting continued growth in the rental market.

Trends in advertised rents by region: rent increases vary from region to region

Rents vary from region to region. The East has seen the sharpest rise for houses (+9,6 %), whilst the South is best known for its flats (+8,3 %). Conversely, rents are falling for houses in the North (-4,0 %) and for flats in the West (-4,6 %). These differences confirm that rental trends vary significantly from one region to another.

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