Good news for construction projects. STATEC, Luxembourg’s national statistics institute, confirms a stabilisation of construction prices in the first quarter of 2025.
The Key Figures
According to the latest published data, the construction price index has only increased by 1.2% over the last twelve months, compared to 8% in 2022 and 5% in 2023.
This stabilisation is observed in most trades, with variations by sector.
Structural works show a slight decrease of 0.5% thanks to the normalisation of material prices. Joinery remains stable with an increase of only 1%. Electrical and plumbing are increasing moderately by 2 to 3%, driven by demand for efficient equipment.
Factors Explaining This Stabilisation
Several elements explain this calm after two years of sharp increases.
The normalisation of supply chains after disruptions linked to Covid and the war in Ukraine has allowed better availability of materials.
The drop in energy costs favourably impacts prices of energy-intensive materials like cement and steel.
The slowdown in the property market has reduced pressure on construction companies, allowing price stabilisation.
What This Means for Your Projects
If you’ve postponed a construction or renovation project, this may be the time to revive it.
Quotes obtained today should be more stable than two years ago. Execution times have also improved with better availability of tradespeople.
Nevertheless, Klimabonus grants with their 25% bonus expire at end of 2025. Combining stabilised prices and maximum grants represents an interesting window of opportunity.
Request quotes for your project →
FAQ
Will prices drop further?
Analysts predict stabilisation rather than a drop. Labour costs remain under pressure due to the shortage of skilled workers.
Which materials have dropped the most?
Construction timber and steel have seen the most significant corrections, returning to levels close to 2021.
Is this the right time to build?
With stabilised prices and still-generous grants, 2025 offers a favourable context for construction and renovation projects.
