Q3 2025: more measured sales prices and a generally stable rental market

The third quarter of 2025 marks a transitional phase for the Luxembourg property market. After several quarters of increases, sales prices are beginning to stabilise, while the rental market is confirming its trend towards equilibrium.

This phase illustrates a slowdown observed this quarter, while maintaining an upward annual trend. Old houses recorded a slight decline of -1.0% compared with the previous quarter, while old flats held steady (+0.2%) and new flats fell by -1.7%. Over a year, the increase remains marked: +5.2% for houses, +3.2% for existing flats and +6.4% for new flats. These figures reflect a recent adjustment, but do not call into question the upward trajectory that began in early 2025.

Different dynamics in different regions

Regional disparities widen in Q3 2025. The South and West are driving growth, with increases of up to +6.9% for new flats in the South (compared with Q3 2024) and +6.6% for existing flats in the West. Conversely, the North (-4.0% for houses) and the East (-6.9%) recorded significant declines, reflecting a more fragmented market in which local dynamics play a decisive role.

The rental market: stability confirmed

On the rental side, the situation remains stable overall. Flat rents rose slightly (+1.81TP3Q), while house rents showed a fairly marked fall compared with the previous quarter (-5.51TP3Q). On an annual basis, the changes are moderate: -2.9% for houses and +1.5% for flats. Regional trends remain contrasted: the East (+4.9%) and the Centre (+2.5%) are recording increases for flats, while other areas, such as the West and the South, are posting decreases.

Towards a more balanced market that is gradually taking shape

The third quarter of 2025 confirms a more measured market, with sales prices stabilising and the rental market broadly stable. Although differences persist between regions, the annual trend remains upwards. Overall, the Luxembourg property market seems to have reached a form of equilibrium for the time being.

Sales: market prices stabilise

Change in advertised sales prices per square metre per quarter

After rising for several quarters, prices remained relatively stable in Q3 2025. Old houses (-1.0 %) and new flats (-1.7 %) fell slightly, while old flats rose by +0.2 % compared with the previous quarter. This trend reflects short-term stabilisation, while confirming the annual increase: +5.2 % for houses, +3.2 % for old flats and +6.4 % for new flats.

Trends in advertised sales prices per square metre by region: an annual trend confirmed almost everywhere and for all types of property

Annual price trends remained on an upward trend in Q3 2025, supported by marked increases in the South (+6.4 % for houses, +6.9 % for new flats) and the West (+5.0 % for houses, +6.6 % for old flats). The Centre recorded a more moderate increase. On the other hand, the North (-4.0 % for houses) and the East (-6.9 %) recorded declines, reflecting a more contrasted market locally.

Rental: a stable market overall

Change in advertised rents per quarter

The rental market confirmed an overall stabilisation this quarter, in line with a balanced annual trend. Rents for flats continued to rise slightly (+1.8 1Q3 compared with the previous quarter), while those for houses followed a more volatile trajectory. This situation reflects overall stability, despite different trends for different properties and regions.

Change in advertised rents by region: stable rents overall, but varying regional dynamics

In the third quarter of 2025, the rental market was stable nationwide, but trends differed from region to region. Flats rose in the East (+4.9 1Q3Q) and the Centre (+2.5 1Q3Q), while the West saw an increase in rents for houses (+4.5 1Q3Q). The South and North recorded more limited movements, illustrating the diversity of local dynamics.

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