Property price evolution in Luxembourg from 2015 to 2026

Over a decade, the Luxembourg property market has undergone major changes: a spectacular +80% increase between 2015 and 2022, followed by an unprecedented correction, then stabilization in 2025-2026.

Average prices per year (apartments, €/m²)

• 2015: ~€4,500/m² — The market is still accessible
• 2016: ~€4,900/m² (+8.9%)
• 2017: ~€5,300/m² (+8.2%)
• 2018: ~€5,800/m² (+9.4%)
• 2019: ~€6,400/m² (+10.3%)
• 2020: ~€7,200/m² (+12.5%) — Covid doesn't stop the rise
• 2021: ~€8,500/m² (+18.1%) — Peak growth, historically low rates
• 2022: ~€9,500/m² (+11.8%) — Market summit
• 2023: ~€8,800/m² (-7.4%) — Correction, ECB rate hikes
• 2024: ~€8,200/m² (-6.8%) — Continued correction
• 2025: ~€8,300/m² (+1.2%) — Stabilization begins
• 2026: ~€8,400/m² (+1.2%) — Stabilization confirmed

Four market phases (2015-2026)

Phase 1: Steady growth (2015-2019)

Prices rose 8-10% annually, driven by population growth (+2%/year), low interest rates (<2%), and insufficient supply.

Phase 2: The boom (2020-2022)

Despite Covid, prices surged: +12% in 2020, +18% in 2021. Near-zero rates and remote work amplified demand. Buyers purchased at listing price or above.

Phase 3: The correction (2023-2024)

The ECB raised rates from 0% to 4.5%. Mortgage rates went from 1.5% to 4%+. Transaction volume dropped 30%. Prices fell 12-15% from the mid-2022 peak.

Phase 4: Stabilization (2025-2026)

Mortgage rates stabilized around 3.2%. Transaction volume recovered (+3.2% in Q4 2025). Prices stabilized with a slight 1-2% increase. The property barometer confirms this trend.

Long-term factors

Demographics

Luxembourg grew from 563,000 in 2015 to 685,000 in 2026 (+22%), driving structural housing demand.

Housing supply

Construction never kept pace: 2,500-3,500 units built per year for an estimated need of 5,000-6,000.

Interest rates

The most influential factor. The correlation between rates and prices is near-mechanical.

Comparison with neighboring countries

• Luxembourg: €8,400/m² (national average)
• Paris: ~€9,500/m²
• Brussels: ~€3,200/m²
• Trier: ~€3,000/m²
• Metz: ~€2,400/m²

Outlook 2027+

Fundamentals remain solid. Analysts forecast moderate 2-4% annual growth for 2027-2030. For real-time data, see our price map and market barometer.

FAQ

Will property prices continue to fall in Luxembourg?

The correction is over. Prices stabilized in 2025-2026 with a slight 1-2% increase. Fundamentals support prices medium-term.

Is 2026 a good time to sell in Luxembourg?

The market is balanced: prices are stable, buyers are returning. It's a good time to sell, especially in spring.

How much has a property bought in 2022 lost?

A property bought at peak (mid-2022) lost about 12-15% by 2024. By 2026, this loss has reduced to 8-10% thanks to the recovery.

Is Luxembourg still a good property investment?

Long-term, yes. Despite the 2023-2024 correction, prices rose +80% over 10 years. The housing deficit and demographic growth support long-term value.

What are the data sources?

Data comes from STATEC, the Observatoire de l'Habitat, and the Banque centrale du Luxembourg.