A Measured Recovery, a New Balance
After two years of slowdown, the residential real estate market in Luxembourg is showing clear signs of recovery. The figures for 2024, published in early 2025, reveal renewed activity, driven by the gradual return of buyers as well as a price adjustment. More than a short-term rebound, a new dynamic is taking hold – more realistic, more selective, and more sustainable.
🇱🇺 Luxembourg at a Glance
With a population of 672,050 residents, 47.3% of whom are foreigners, the Grand Duchy has a demographic profile that is unique in Europe. A continued positive migration balance (+10,376 in 2024) keeps supporting housing demand, especially in urban and border regions.
📈 A Strong Recovery in Transactions
The year 2024 marks a clear resurgence in activity:
- Sales of existing apartments increased by +51%
- VEFA (off-plan new-builds) grew by +38%
Compared to the year 2023
A particularly striking figure: in Q4 2024, sales of new homes jumped by +174% compared to the previous quarter. This confirms that demand is indeed present – but far more sensitive to pricing and financing conditions. However, this figure should be interpreted with care, as it also includes sales made directly by the state to developers.
💶 Prices Under Control
Despite this recovery, prices have not skyrocketed. On the contrary:
- In the resale market, prices rose by only 1.9%
- In the new-build sector, there was even a slight decrease of –2.2%
Compared to 2023
The market is becoming more rational, with sellers adjusting their expectations in response to increasingly cautious and demanding buyers.
📐 Stable Surfaces, Targeted Demand
The average size of sold apartments remains almost unchanged:
- ±79 m² for VEFA
- ±80 m² for resale
This reflects a demand primarily focused on family homes (2–3 bedrooms), within tighter budget constraints than in previous years.
🗺️ A Regionally Contrasted Landscape
The Centre remains the most dynamic region in terms of sales, followed by the South. The North records fewer transactions but offers opportunities for well-priced developments.
Prices vary greatly between municipalities:
- In the resale market: from €4,800 to over €10,000/m²
- In VEFA: from €7,800 to over €13,000/m², with peaks reaching €15,000/m² in sought-after areas of Luxembourg City
🌆 Focus: Luxembourg City
Luxembourg City remains the most expensive market in the country.
In the new-build segment, most listings fall between €10,000 and €15,000/m², with some approaching €16,000/m².
In the resale market, offers are more accessible, ranging between €8,000 and €11,000/m² – but the price gap remains significant.
🏦 A Key Factor: Purchasing Power
The real shift since 2022 has been the rise in interest rates, which has significantly reduced household borrowing capacity.
A couple earning €9,000 net/month with €100,000 in savings can now borrow far less than two years ago.
This forces buyers to rethink their plans and be more patient… and sellers to adjust their strategies.
✅ Conclusion: A Healthier, More Balanced Market
The Luxembourg residential real estate market is entering a constructive transition phase.
Transactions are picking up, prices are adjusting, and buyers are returning – with clearer and more realistic expectations.
At Vevalo, we see this evolution as a moment of refocusing: a chance to return to solid fundamentals, bring more transparency to the market, and guide our clients with data-based advice, a holistic vision, and deep local expertise.
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