Is 2026 a good year to buy property?

After several years marked by rising interest rates, slower transaction volumes and challenges in the construction sector, the Luxembourg property market appears to be gradually regaining stability. Buyers now benefit from greater visibility and stronger support thanks to the introduction of several government measures aimed at improving access to housing. That said, the environment remains challenging: property prices are still high in many parts of the country, and becoming a homeowner remains a significant financial commitment. Should prospective buyers wait a little longer or take advantage of the opportunities available today? We asked Bruno Mendes, Team Manager Lending at Spuerkeess.

The Luxembourg property market has changed significantly in recent years. After a long period of sustained growth, the sharp increase in interest rates led to a slowdown in transactions, weaker demand and greater caution among buyers. Today, the situation appears clearer.

Financial markets have gradually adapted to the new economic environment and borrowers now enjoy greater visibility than they did in 2023, 2024 and 2025. Households are gradually regaining confidence in their long-term plans.

At the same time, property prices have adjusted across many market segments, giving buyers more room for negotiation than a few years ago.

Most importantly, the Luxembourg Government has confirmed that housing remains a national priority. Through the "Booster fir de Wunnengsbau" programme, several new measures are intended to facilitate access to homeownership, support construction and expand the supply of affordable housing.

The objective is clear: to create a more favourable environment for both buyers and stakeholders in the real estate sector.

Without suggesting a return to the exceptional conditions that existed before interest rates rose, many indicators suggest that 2026 could be a particularly attractive period for households wishing to become homeowners.

To support access to housing, the Government has introduced several major measures as part of the "Booster fir de Wunnengsbau" programme:

The "Bëllegen Akt" tax credit has now been increased to EUR 45.000 per person.

For a couple, the tax advantage can therefore reach EUR 90.000, significantly reducing the costs associated with purchasing a property intended as a primary residence.

For purchases of off-plan properties (VEFA - Vente en l'État Futur d'Achèvement) concluded from 16 July 2026, registration and transcription duties are payable only on the value of the land, provided that construction is no more than 80% complete at the time of purchase. This measure will remain in force for three years.

For some buyers, this may represent substantial savings at the time of purchase.

Interest subsidy schemes have also been enhanced.

For first-time buyers aged 35 or under, the loan amount taken into account when calculating the interest subsidy has increased from EUR 200.000 to EUR 300.000. For other households, the limit has been raised to EUR 250.000.

These changes are intended to further reduce the financial burden on households entering the property market.

This is a widely held belief. However, contrary to common perceptions, banks have not fundamentally changed their lending criteria.

Applications continue to be assessed on the same key elements: household income, repayment capacity, financial stability and the overall viability of the project.

At Spuerkeess we are seeing a gradual return of interest in property projects. Many clients once again wish to assess their borrowing capacity and determine whether their plans are achievable under current conditions.

The key principle remains unchanged: ensuring that a property project is compatible with a household's budget, both today and in the future.

Personal savings are naturally one of the elements considered when assessing a housing loan application.

They help cover ancillary acquisition costs, such as notary fees, as well as certain regulatory requirements that may apply depending on the borrower's profile.

For a first property purchase, however, it remains possible to obtain a very high level of financing relative to the value of the property. This naturally has a direct impact on the required personal contribution, which can be significantly reduced.

Nevertheless, it is advisable to maintain an adequate financial reserve to deal with unforeseen circumstances that may arise after the purchase: renovation works, additional equipment, exceptional expenses or changes in personal circumstances.

Building savings before buying therefore remains a real advantage, whether held in a savings account, a home savings plan or through other investment solutions suited to the individual's profile.

The best advice is not to wait until you have found the ideal property before seeking information about financing.

An initial meeting with an advisor allows you to determine your borrowing capacity, assess the impact of any public support measures for which you may be eligible and establish a realistic budget before you even begin your property search.

In a rapidly evolving environment, personalised support is a real advantage.

Buying a home is often the most important financial project of a lifetime. That is why it is essential to rely on a trusted partner capable of supporting you throughout every stage of the process, from the initial planning phase right through to receiving the keys.

Would you like to know your borrowing capacity or benefit from personalised support to bring your property project to life?

Make an appointment with a Spuerkeess advisor and benefit from an analysis tailored to your situation.

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