The decline in property prices in Luxembourg is real, according to an analysis by AtHome. A drop of 3.6% for new apartments and 0.9% for existing houses was recorded in just three months by the end of the second quarter of 2025, partly linked to the expiration of tax incentives.
New apartments saw the average price per square meter fall to below €10,000, compared with €10,411 in the summer, now standing at €9,863. Despite strong demand and stable wages and interest rates, the impact on prices has been significant.
Previously, housing incentives had supported price increases after a sharp decline between 2022 and 2023, but the end of this support led to a gradual downturn starting in mid-2025, which is expected to continue in 2026.
Rents stabilized by the end of 2025. Houses are being rented at an average of €3,296 per month, up 2.7% compared with the end of 2024, while apartment rents declined by 1.3% compared with the third quarter of 2025, although they recorded an overall annual increase of 2.2%.
Nationwide, house rents rose by 11.6% in the west of the country, while falling in the east by nearly the same rate (-10.6%). The south recorded a slight increase of 3.2%.
