In Luxembourg, a renovated property can sell for 15 to 30% more than an equivalent unrenovated property. But not all works are equal in terms of return on investment. Some can even decrease value if poorly executed.
Here are the 10 renovations that truly add value to your property in Luxembourg in 2025.
The Luxembourg Real Estate Market Context
The Luxembourg real estate market is experiencing a significant recovery in 2025, with a 73% increase in transactions in the second quarter. Buyers are back, but they’re more demanding.
Two criteria now dominate searches: the energy passport and the general condition of the property. A home rated A or B sells faster and for more than one rated F or G.
In this context, energy renovation works are particularly profitable.
#1 Improving the Energy Passport (ROI 80-150%)
This is THE most profitable work in Luxembourg. Moving your property from class G to class C can increase its value by 15 to 25%.
The work involved includes wall, roof and floor insulation, replacing windows with triple glazing, and installing a heat pump or efficient heating system. The average cost to gain two to three classes is between €30,000 and €80,000.
Good to know: This work is largely subsidised by Klimabonus, significantly reducing your net investment.
#2 Renovating the Kitchen (ROI 70-100%)
The kitchen is the room that most influences the buying decision. A modern, functional kitchen can swing a sale.
The ideal investment for resale is between €15,000 and €25,000 for a quality kitchen without extravagance. Favour neutral and timeless colours, built-in appliances from recognised brands, and a resistant worktop.
Be careful not to over-invest: a €60,000 kitchen in a €400,000 apartment won’t be valued at its true worth.
#3 Modernising the Bathroom (ROI 60-90%)
After the kitchen, the bathroom counts most. An outdated bathroom can drive away a potential buyer.
Elements to prioritise are a walk-in shower rather than a bathtub, large format tiles in neutral tones, quality fixtures, and built-in storage. The optimal investment is between €8,000 and €15,000.
Check out our complete guide on bathroom renovation costs.
#4 Installing a Heat Pump (ROI 50-80%)
With the planned end of gas and oil heating, buyers prefer properties equipped with sustainable systems.
The installation cost of a heat pump ranges from €15,000 to €25,000, but Klimabonus grants can cover 50% of this amount. The selling point is twofold: reduced energy bill and future compliance.
#5 Creating a Master Suite (ROI 50-70%)
In family homes, a master suite with private bathroom is highly sought after.
The work involves transforming a large bedroom or combining two small ones, adding a bathroom with shower and double basin, and creating built-in storage. Investment is between €15,000 and €30,000.
This type of project requires a good plumber and competent electrician.
#6 Converting the Attic (ROI 50-70%)
Additional square metres mechanically increase the property’s value. Converting an unused attic can create 20 to 40m² of living space.
The average cost ranges from €1,000 to €1,500 per m² converted, including insulation, roof windows, electricity and finishes. A 30m² attic can thus increase the property value by €100,000 to €150,000 in Luxembourg.
#7 Refreshing Paint and Floors (ROI 100-300%)
This is the best cost-benefit ratio. A fresh coat of paint and redone floors transform a property.
The budget for an 80m² apartment is around €3,000 to €6,000 for painting and €4,000 to €8,000 for floors. The visual impact is immediate and buyers see a “ready to live” property.
Find a qualified painter on Tack.
#8 Landscaping Exterior and Terrace (ROI 40-60%)
In Luxembourg, a private outdoor space is a major asset. A landscaped terrace, garden or balcony makes the difference.
Relevant investments include a quality wood or composite terrace, careful outdoor lighting, perennial plantings, and a fence or hedge for privacy. Average budget is between €5,000 and €15,000.
#9 Installing Home Automation (ROI 30-50%)
The connected home appeals more and more, especially to young buyers.
Equipment that makes a difference includes a connected thermostat, motorised roller shutters, smart lighting, and a connected alarm system. An investment of €3,000 to €8,000 can modernise your property’s image.
#10 Creating a Garage or Carport (ROI 30-50%)
Parking is crucial in Luxembourg. An enclosed garage or carport adds real value.
The cost of a simple carport is €3,000 to €8,000. An enclosed garage costs between €15,000 and €30,000 depending on construction. In areas where parking is scarce, it’s a decisive argument.
Renovations to Avoid for Resale
Certain works can harm your property’s value or not be valued at their true worth.
A swimming pool is very personal and expensive to maintain, which can put off buyers. Overly personalised layouts like bright colours or very marked style divide opinions. Extensions without permits are a legal risk that drives away savvy buyers. And home cinema represents an investment rarely recovered at resale.
Find Your Tradespeople on Tack
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FAQ
Which renovations to prioritise with a limited budget?
Start with painting and floors, then the bathroom if it’s dated. These works offer the best cost-to-value ratio.
Should I renovate before selling or lower the price?
In Luxembourg, buyers generally prefer a renovated property. A well-executed renovation often allows you to recover more than the investment.
Are Klimabonus grants recoverable at resale?
Yes and no. Grants received are not reclaimed by the State, but they’re not valued in the sale price. However, the works themselves increase the property’s value.
