What the experts have to say about the property market in Q3 2025

After rising for several quarters, sales prices are beginning to stabilise in this period. third quarter 2025The rental market remains balanced. The new-build segment, meanwhile, remains more fragile.

To decipher these developments, we have gathered the views of several specialists in the sector: Pierre Clément (Nexvia), Julien Licheron (LISER/Housing Observatory) and Aydine Correia (Promobe Group). Sales volumes, price trends, buyer behaviour... these are just some of the indicators we use to understand current dynamics and anticipate future market movements.

Pierre Clément - Director of Nexvia agency

Based on Nexvia's exclusive transaction data obtained through its banking partnerships, prices have increased by 2.7% since the beginning of the year for flat sales in Luxembourg City compared to the average price in 2024 (+1.9% for flats outside the city and +2.0% for houses at national level).

Above all, the number of compromises signed for existing properties in July and August, since the end of the tax package, is significant. With volumes identical to those for the first 6 months of 2025. And at the same price levels!
These figures confirm our June forecasts of a dynamic second half and a continuation of the reasonable price rises already under way in the existing market.

Especially as Luxembourg remains one of the countries where buying is the quickest and most profitable option compared with renting. This is thanks to the Bëllegen Akt of 40,000 euros per buyer and tax-deductible interest on the loan.

Luxembourg remains one of the countries where buying a property is most profitable in the shortest possible time.

Julien Licheron - Economist at Liser / Housing Observatory

Since mid-2024, the Luxembourg property market has been showing signs of recovery, but this momentum remains concentrated in the existing home segment.

The new-build market, on the other hand, continues to struggle: the number of sales of flats in the future state of completion (VEFA) remains less than half the pre-crisis levels. Temporary tax measures, extended until June 2025, stimulated transactions at the end of 2024 and again in mid-2025, but mainly in the existing property market, with little impact on the new-build market.

The price differential between new and existing flats, combined with a lack of buyer confidence, is holding back demand for new-build properties.

The withdrawal of investors, held back by uncertainty over profitability and the prospect of capital gains, is exacerbating the stalemate.
In terms of prices, the upward trend observed in early 2025 by atHome, based on advertisements, is reflected in the data from the Observatoire de l'Habitat, based on notarised deeds.

However, the upturn in activity linked to the expiry of the tax measures may have caused a mechanical rise in prices in the 2nd quarter. Data from announcements for the 3rd quarter of 2025 suggest that this rise may have been a one-off, with prices stabilising and becoming the norm again by the end of 2025.

Aydine CORREIA - Head of Sales Department PROMOBE Group

In the 3rd quarter of 2025, the Luxembourg market for sales before completion (VEFA) showed encouraging signs. Although the volume of transactions is still lower than in the years 2021-2023, the announcement of the imminent end of government subsidies has sparked renewed interest and restored a certain dynamism to the sector. We are now seeing a gradual return to confidence, accompanied by a marked change in behaviour: future homeowners are taking more time to analyse and budget for their project before making a commitment. Where decisions were taken more quickly a few years ago, they are now part of a more considered and secure process. At PROMOBE, we see this development as a positive sign.

The VEFA is no longer seen as a gamble, but as a carefully considered life project.

Our mission remains unchanged: to provide transparent support and advice, keep our promises and deliver homes that combine quality of life with sustainability.

Today, VEFA remains a promising project: well-prepared and confidently supported, each project becomes a lasting success.

Read our full analysis of the Luxembourg property market in the third quarter of 2025 here. 👇🏻