The Luxembourg real estate market is waking up. With a 73% increase in transactions in the second quarter of 2025 compared to the same period in 2024, the sector confirms its recovery.
Q2 2025 Figures
Data published by Luxembourg notaries shows a significant recovery in activity.
The number of transactions jumped 73% compared to Q2 2024. Prices remain stable with a slight increase of 2% year on year. Sales times are shortening, from 6 months to 4 months on average.
This recovery affects all segments: flats, houses and land.
Factors Behind the Recovery
Several elements explain this rebound.
The drop in interest rates from 4.5% to 3.5% since the 2023 peak has restored purchasing power to buyers.
Sellers have adjusted their prices downward by 10 to 15% from the 2022 peaks, making properties more accessible.
Confidence is returning as buyers anticipate lasting stabilisation and are repositioning in the market.
The Impact on Renovation
This market recovery has direct consequences on the renovation sector.
Buyers of older properties are planning upgrade works. With growing energy requirements, renovation becomes a priority.
Sellers who want to maximise their sale price invest in strategic renovations before putting on the market.
Our guide on renovations that increase property value details the most profitable investments.
What This Means for You
If you’ve just bought a property, now is the time to plan your renovation works. Tradespeople remain available and Klimabonus grants with 25% bonus are still accessible.
If you’re planning to sell, investing in the energy passport and key renovations can significantly increase your sale price.
Find tradespeople for your project →
FAQ
Will prices rise sharply?
Analysts predict a moderate increase of 3 to 5% in 2025, far from the surges of 2021-2022.
Is it the right time to buy and renovate?
Yes, the combination of adjusted prices + falling rates + maximum grants creates a favourable context.
Which renovations to prioritise after a purchase?
Improving the energy passport and modernising the kitchen and bathrooms offer the best return on investment.
