Stabilisation of the property market confirmed at the end of 2025

The fourth quarter of 2025 saw a continuation of the dynamic trends seen throughout the year, with the Luxembourg property market in a phase of stabilisation. Sales prices remain steady overall, with a slight fall for new flats, which remain attractive thanks to their quality and modernity. The rental sector, meanwhile, remains broadly balanced, with relatively constant short-term trends, testifying to lasting market stability and sustained demand.

On the sales side, trends compared with the previous quarter confirm this stability. Old houses and flats recorded a slight fall of -0.9 1Q3Q, while new flats saw a more marked decline (-3.6 1Q3Q), with prices falling back below €10,000 per square metre in several districts. Over a year, however, the trend remains upwards for all segments, with increases of +5.5 % for old houses, +3.1 % for old flats and +1.7 % for new flats. These figures reflect persistent regional disparities, underlining the diversity of the Luxembourg market and the need for buyers and investors to find out about local dynamics before positioning themselves. This trend also reflects a gradual adaptation of supply to demand, to changing buyer expectations and to the dynamics of ongoing construction projects.

On the rental side, the market continues to evolve within a controlled framework. In the short term, rents are broadly stable: compared with the previous quarter, rents for houses are up slightly (+1.9 1Q3Q), while rents for flats are down slightly (-1.3 1Q3Q). On an annual basis, rents rose moderately, with contrasting dynamics across regions and property types. These local variations reflect not only the geographical distribution of supply and demand, but also the specific features linked to the quality, size and modernity of the homes available. Central districts and areas close to public transport continue to enjoy strong appeal, while some outlying municipalities are experiencing more limited adjustments.

Overall, the fourth quarter of 2025 confirms that the Luxembourg property market is evolving in a more balanced phase, with measured adjustments and a homogeneous trend. While trends differ according to segment and geographical area, the general dynamic is one of gradual stabilisation in both the sales and rental markets. This period of relative stability gives market players, whether buyers, sellers or investors, greater visibility with which to plan their decisions. From 2026 onwards, the market should continue this trend, with moderate changes and general stability. Local characteristics and neighbourhood dynamics will naturally continue to influence market movements, providing players with a solid basis for anticipating and organising their projects.

For sale : sales prices continue to stabilise

Change in advertised sales prices per square metre per quarter

After several quarters marked by a relative stabilisation in prices, the sales market confirmed this trend in Q4 2025. Compared with the previous quarter, prices for existing houses and flats fell slightly (-0.9 1Q3/Q), reflecting overall stability, while prices for new flats fell more sharply (-3.6 1Q3/Q), with prices once again dropping below the €10,000/m² threshold.

Trend in advertised sales prices per square metre by region: an annual upward trend for most properties and regions

Year-on-year, sales prices are continuing their upward trend, despite contrasting regional dynamics. Prices for existing houses rose in particular in the West (+6.9 %), the Centre (+6.7 %) and the South (+4.5 %), while prices for existing flats rose more moderately, for example in the Centre (+1.9 %) and the South (+0.6 %). Conversely, the West and East recorded falls in some segments, illustrating a market with local contrasts.

Location : continuing overall stability in the rental market

Change in advertised rents per quarter

In the fourth quarter of 2025, the rental market remained stable overall, in line with previous quarters. Compared with the previous quarter, rents for houses rose slightly (+1.9 1Q3Q), while rents for flats fell slightly (-1.3 1Q3Q). These moderate trends reflect an overall balanced rental market.

Change in advertised rents by region: rents up slightly year-on-year, with contrasting regional trends

Rents for houses rose sharply in the West (+11.6 %), while they fell in the North (-2.5 %) and more sharply in the East (-10.6 %). For flats, the changes were more moderate, with increases seen particularly in the North (+2.3 %), the Centre (+0.4 %) and the South (+3.2 %). These variations reflect different dynamics according to region and property type, in a rental market that remains balanced overall.

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