The real estate market in the Grand Duchy of Luxembourg has been through a turbulent period since 2022. Under the effect of economic uncertainties, rising interest rates, slowing construction projects and price adjustments, the usual points of reference have been disrupted. However signs of a rebalancing following the storm are emerging. Andrea Maramotti, CEO of Immotop.lu, gives us his analysis.
After a particularly difficult 2023, 2024 marked a turning point. The fourth quarter saw an acceleration in a recovery that had already begun in previous quarters. The number of residential transactions jumped to 7.431 sales, up 48% compared to 2023. This is a significant increase, although still a long way from the peaks recorded between 2017 and 2019, when the market exceeded 11.000 annual sales.
The financial volume of residential transactions followed the same trend as the number of sales. In 2024, it reached €5,4 billion, an increase of 44% compared to 2023, when it stood at €3,7 billion. This growth reflects a pick-up in activity on the market, even if we are still below the historical peak of €8 billion recorded in 2021.
After the historic trough of 2023, 2024 was a year of rebalancing. This upturn in activity generated a wave of optimism in the sector, with a widely shared perception: the market is regaining momentum and laying the foundations for a new phase of healthier growth.
According to data from Immotop.lu, the average price of a property for sale in Luxembourg was €8.373/m² in Q1 2025. This represents a decrease of 5,1% year-on-year, although prices remain stable compared to the previous quarter (€8.374/m² in Q4 2024). After several quarters of decline, this stabilisation is a strong signal for both buyers and sellers.
The differences remain marked depending on the energy performance of the housing units: a property rated A to C can sell for up to €1.400/m² more than a property rated F to G.
Regionally, only the East region posted a slight increase over the quarter (+0,8%), while the other regions, including the West (-1,2%), posted declines. The Centre region, the most expensive, stabilised at around €10.700/m².
The impact of the energy rating on the price per square metre varies significantly by region. The price differentials between the best-rated properties (A-C) and the worst-performing (F-G) are particularly marked. The difference can reach €1.407/m² in the South region, €1.304/m² in the Centre, €979/m² in the West, €976/m² in the East, and €816/m² in the North. These figures illustrate a clear trend: energy efficiency is an increasingly important valuation factor in the Luxembourg real estate market.
In Luxembourg City, the average price was €12.106/m², down slightly (-1%). Belair remains top of the list of most expensive neighbourhoods (€14.489/m²), while Merl recorded the biggest increase (+3,6%). Conversely, Limpertsberg (-5,9%) and Hollerich (-4,5%) posted the largest declines.
The energy criterion remains a major factor in property valuations, reflecting an increasing preference for sustainable and energy-efficient housing.
Rents continued to rise across the country. Average rent reached €29,7/m² in Q1 2025, an increase of 2,8% over the quarter, and 9,6% year-on-year. Over two years, the increase is close to 17,5%. At the same time, the average time to rent a property has increased from 2,2 months to 3,7 months, indicating that more and more households are struggling to keep up with rising rents. This suggests that prices are likely to have reached a critical threshold for affordability.
The start of the year confirms a promising trend: buyers are returning. The number of prospects on properties for sale increased by 50% compared to early 2024, and by 150% compared to 2023. This renewed interest, supported by price stabilisation, is a key indicator of the market’s recovery. It reflects consumers’ desire to reposition themselves and explore their options again. This is the first important step towards rebalancing the market.
With the support of our data experts, we continuously analyse trends in European and international real estate markets. Our objective is to better understand and anticipate likely and potential changes in the real estate market in Luxembourg.
Since 2007, the Luxembourg real estate market has followed a classic pattern, passing through the first three phases of its cycle – recovery, growth and maturity – each lasting several years. However, this steady progression was abruptly interrupted by an accelerated transition to the subsequent phases.
In fact, the phases of slowdown and decline were particularly brief, lasting just one year each. This anomaly can be attributed to the sharp rise in interest rates, an external and sudden factor that put intense pressure on the market.
As anticipated in our previous analyses, the cycle bottomed out in 2023. 2024 marked the start of a new phase of rebalancing. This resulted in a decrease in the average transaction price, making the market more accessible and stimulating buyer interest, which contributed to a significant increase in the number of sales.
In 2024, the average price of transactions was €727.000, a decrease of €21.000 (-3%) compared with 2023, and €85.000 (-11%) compared with 2022. This price correction enabled the market to regain its attractiveness, paving the way for a gradual resumption of activity.
In this context of transition, it is reasonable to expect real estate developers and construction companies to adapt their offer to the new market reality. This will include the development of more compact housing, better calibrated to meet household expectations in terms of accessibility and budget.
It seems unlikely that prices per square metre will return to pre-2010 levels. The Luxembourg real estate cycle is more like an upward spiral, marked by successive phases but generally oriented towards long-term value growth. The next stage expected is one of recovery, which we expect as early as 2025, with relatively stable prices and slightly higher transactional activity.
With this in mind, we remain resolutely optimistic, as all indicators point to a gradual recovery and a return to market attractiveness in the coming years. In the longer term, there is a real potential to return to a level of dynamism comparable to that of 2014-2019, during which there were between 16 and 19 sales per 1.000 inhabitants. This indicator, which fell to 7,6 in 2023, has already picked up again in 2024 to reach 11,1 transactions per 1.000 inhabitants, a signal consistent with the current rebalancing phase.
Since 2019, Immotop.lu has been working hand in hand with Spuerkeess to offer users an enhanced experience. This alliance particularly allows individuals to simulate their purchasing power directly via advertisements, using a built-in calculator. Always in search of innovation, Immotop.lu is currently the only Luxembourg portal to offer a price proposal feature, facilitating negotiations between buyers and branches.
The above-mentioned factors confirm a clear trend – the current market is favourable to buyers. This is a good time to consider a purchase, with wider room for negotiation, less competition and more affordable opportunities.
Buying a property is an important decision that deserves careful preparation. It is essential to define your criteria: location, budget, surface area, type of property, existence of a garden or parking space, etc. Immotop.lu supports you in this process by offering intuitive and customisable tools.
For example, an exclusive feature allows you to search around your place of work or preferred location, depending on the type of transport you use and desired journey time. You can also directly draw an area on the map and refine your search using precise filters.
Each listing is accompanied by a Spuerkeess calculator to help you assess your project’s feasibility.
At Immotop.lu, we continuously innovate to offer you the best user experience, including advances in artificial intelligence. Our goal is to help you more easily find the right accommodation for you.
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The real estate market in the Grand Duchy of Luxembourg has been through a turbulent period since 2022. Under the effect of economic uncertainties, rising interest rates, slowing construction projects and price adjustments, the usual points of reference have been disrupted. However signs of a rebalancing following the storm are emerging. Andrea Maramotti, CEO of Immotop.lu, gives us his analysis.
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Four years after repositioning the Spuerkeess brand Luxembourg's leading bank is launching in early 2025 a new image campaign: “Thriving Together”. To mark the occasion, we spoke to the marketing managers in charge of the project, Lisa Wells, Vice President and Head of Business Unit, Claude Faber, Team Manager Brand and Product Communication and Raoul Loudvig, Team Manager Creatives.
