Evolution of Real Estate Prices in Luxembourg Over Ten Years: Outlook for 2026
Price Stability in 2026
In 2026, the Luxembourg real estate market is characterized by price stability, with expected variations between -2% and +2% depending on neighborhoods and property types. This trend follows a period of normalization after years of significant fluctuations.
Influencing Factors
- Interest Rates: Interest rates have decreased from their peak in 2023, stabilizing around 3-4% for mortgage loans.
- Tax Measures: The end of temporary tax measures has influenced transaction volumes, leading to a slight decrease in sales compared to 2025, but remaining higher than in 2023.
- Quality and Location: Well-located and quality properties continue to sell well, while those with poor energy performance or in less desirable areas experience longer selling times.
Impact on the Rental Market
The rental market remains stable, with strong demand for small and medium-sized well-located apartments. Rents have slightly adjusted, making some housing more affordable in real terms despite inflation.
Conclusion
In 2026, the Luxembourg real estate market seems to be heading towards a period of stability, offering buyers and sellers a more predictable environment for making informed decisions. Challenges persist, particularly in terms of construction and housing availability, but the general trend is towards normalization.
Sources
- Together Immo – Immobilier résidentiel au Luxembourg en 2026 – 2026
- Wortimmo – Marché immobilier au Luxembourg : bilan 2025 et perspectives 2026 – 2026
- RTL – La baisse des prix se confirme au Luxembourg – 2026
