Luxembourg Real Estate Trends Q1 2026

Market Overview

The Luxembourg real estate market in Q1 2026 is characterized by a slight decline in sale prices and stable rental rates. This period marks a continuation of the market's adjustment phase, following a rebound in early 2025.

Sale Prices

Sale prices for older homes and apartments have decreased, with older houses falling below €6,000/m² and older apartments dropping under €8,000/m². New apartments remain below €10,000/m², reflecting a challenging environment for new constructions due to slower sales and construction activities.

Rental Market

The rental market remains stable with high demand, particularly in attractive areas. Rental prices for apartments have increased by 4.4% over the past year, outpacing inflation, which stands at 1.6%.

Transaction Volumes

Transaction volumes have stabilized, with a notable increase in sales of existing homes. The number of transactions for existing apartments rose by 9.4%, and for houses by 11.5% compared to Q1 2025. However, sales of new apartments (VEFA) have decreased by 18.2% year-on-year.

Regional Variations

Price and activity variations across regions highlight the importance of local dynamics. Some areas, particularly in the north, have experienced more significant price drops, while others remain stable.

Conclusion

The Luxembourg real estate market in early 2026 is navigating through a period of adjustment, with sale prices slightly declining and rental prices remaining high. The market's transformation continues, influenced by regional differences and economic fundamentals.