The property market in Luxembourg in Q3 2026: a sharp fall in prices for new-build properties, whilst prices for existing properties remain relatively stable

This analysis is based on data from property listings published on atHome.lu, with a view to tracking trends in prices and rents in Luxembourg during the third quarter of 2026.

In the third quarter of 2026, advertised prices rose slightly in the second-hand property market. Existing houses rose by 0.4 % compared with the previous quarter, to €6,002 per square metre. Existing flats rose by 1.4 %, to €7,910 per square metre.

The new-build market is following an opposite trend. Prices for new-build flats fell by 4.1 % over the quarter, to €9,160 per square metre. Year-on-year, this segment recorded the sharpest fall (-10.5 %), compared with -1.2 % for older houses and -2.2 % for older flats.

The rental market continues to show an upward trend year-on-year, despite mixed quarterly developments. Following the sharp rise seen in the second quarter, advertised rents for houses fell by 6.1 per cent quarter-on-quarter to €3,431 per month. They nevertheless remain 6.1 per cent higher quarter-on-quarter than their level in the third quarter of 2025.

Flats are showing a more steady rise. Their average rent stands at €1,960 per month, up by +1.5 % over the quarter and by +3.8 % year-on-year.

Regional disparities remain significant. In the sales market, the East has seen the sharpest rise for existing houses (+10.3 % year-on-year), whilst the Centre has recorded the steepest fall for new flats (-11.7 %).

In the rental market, flat rents are rising across all regions. The sharpest increases are in the South (+11.6 Q1-Q3) and the West (+10.5 Q1-Q3). For houses, changes range from -4.8% quarter-on-quarter in the West to +10.7% quarter-on-quarter in the Centre.

These discrepancies show that market trends continue to vary considerably across regions and property types.

The third quarter of 2026 was notably marked by the announcement, on 16 July, of the «Booster fir de Wunnengsbau» by the Luxembourg Government. As a reminder, this package of measures aims to support construction, investment in rental properties, home ownership and the development of affordable housing. Whilst it is still too early to gauge the effects of these measures in this quarter’s data, these new measures should help to sustain activity in the property market over the coming quarters. Future editions will allow us to monitor their impact.

Sales: relative stability in the second-hand property market, a more marked decline in the new-build market

Change in advertised sales prices per square metre per quarter

In the third quarter of 2026, advertised prices for second-hand properties remained broadly stable. Second-hand houses recorded a very slight increase of +0.4 % compared with the previous quarter, whilst second-hand flats rose slightly by +1.4 %. Year-on-year, however, both segments continued to trend downwards: -1.2 % for existing houses and -2.2 % for existing flats. New-build properties are experiencing a more pronounced downturn, with a fall of -4.1 % over the quarter and -10.5 % year-on-year.

Trends in advertised selling prices per square metre by region

Regional trends remain mixed

Over the past year, advertised prices have varied across regions and property segments. The East has seen the sharpest rise for older houses (+10.3 %), whilst the North has seen increases for both houses (+5.1 %) and older flats (+8.6 %). New-build properties have seen the sharpest falls, particularly in the Centre (-11.7% Q1-Q3), the North (-9.9% Q1-Q3) and the South (-7.6% Q1-Q3). Conversely, the West showed a slight increase (+1.9% Q3-Q1). These variations confirm the influence of local dynamics on price trends.

Rental market: mixed quarterly trends, but rents up year-on-year

Change in advertised rents per quarter

In the third quarter of 2026, advertised house rents fell by -6.1 % following the sharp rise in the previous quarter. At an average of €3,431 per month, it nevertheless remains 6.1 per cent higher quarter-on-quarter than its level in the third quarter of 2025. Flats continue to show a more steady rise. Their advertised rent averages €1,960 per month, representing an increase of +1.5 % over the quarter and +3.8 % year-on-year.

Trends in advertised rents by region

Rents for flats are rising across all regions

Over the past year, advertised rents for flats have risen in all regions. The increases were most pronounced in the South (+11.6% Q3-Q4) and the West (+10.5% Q3-Q4), ahead of the East (+6.6% Q3-Q4), the North (+4.8 1Q3Q) and the Centre (+3.5 1Q3Q).

For houses, the trends are more mixed. The Centre region recorded the sharpest rise (+10.7 %), ahead of the South (+6.6 %) and the East (+0.9 %). Rents, however, fell in the West (-4.8 %) and the North (-1.6 %).

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