Methodology: Three Complementary Sources
For this analysis, we draw on three distinct sources, each with its own specificities:
Observatoire de l'Habitat / Ministry of Housing Luxembourg — The official reference, based on notarial deeds. These data cover apartments only (existing and VEFA). Latest available data: Q4 2025, published March 2026.
Immotop.lu — Real estate portal and partner of the Observatoire de l'Habitat. Statistics based on listed prices, covering all property types including houses. Latest data: Q1 2026, published 7 April 2026.
atHome.lu — Luxembourg's leading real estate portal. Quarterly data covering houses and apartments with detailed regional analyses. Latest data: Q1 2026, published 2 April 2026.
The Fundamental Distinction: Existing, VEFA and Houses
🏠 Existing Apartments
National average: 7,764 €/m² in Q4 2025, virtually stable year-on-year (-0.3%).
Source: Observatoire de l'Habitat, Q4 2025
Immotop Q1 2026 confirms: average price of 8,177 €/m², down -1.8% on the quarter and -2.3% year-on-year — a gradual, measured adjustment.
atHome: existing apartments back below 8,000 €/m² in Q1 2026 (-1.4% on the quarter).
Our view: The existing market is adjusting but holding structurally.
🏗️ New-Build Apartments — VEFA
National average: 9,507 €/m² in Q4 2025, down -5.3% on the quarter and -2.8% year-on-year.
Source: Observatoire de l'Habitat, Q4 2025
atHome Q1 2026: new-builds remain below 10,000 €/m² (-3.3% on the quarter). Construction sector slowdown, extended delays, more difficult off-plan commercialisation.
Our view: New-builds are going through a structural correction. VEFA buyers today have a more favourable negotiating position.
🏡 Existing Houses
Data from Immotop and atHome only. Q1 2026: existing houses have fallen below 6,000 €/m² (-3.3% on the quarter, atHome).
Regional Analysis — Q1 2026
🏙️ Centre — Luxembourg City and Surroundings
Existing: ≈ 10,500 €/m² | Luxembourg City: 11,569 €/m² (Immotop Q1 2026, -2.5% on quarter)
VEFA: ≈ 12,500 €/m² | Most expensive neighbourhood: Belair at 12,864 €/m²
Rents: ≈ 34 €/m²/month (+5.8% year-on-year)
The most expensive and most resilient region. Rental market under strong pressure, driven by European institutions, the financial sector and expatriates.
Promovillas advice: Correct pricing from day one is decisive. A well-priced property finds a buyer. An overpriced one stagnates.
🌳 South — Esch-sur-Alzette, Belval, Differdange, Sanem
Existing: ≈ 7,000 €/m² | VEFA: ≈ 7,700 €/m²
Immotop Q1 2026: -1.5% on the quarter but +1.2% year-on-year — the only region showing annual growth.
Promovillas advice: For rental yield investors at a reasonable entry point, the South deserves close attention.
🏡 West — Mersch, Capellen, Steinfort, Kehlen
Existing: ≈ 7,500 €/m²
Immotop Q1 2026: stable on the quarter, -1.1% year-on-year.
Promovillas advice: The West offers an excellent quality of life / price ratio for families settling near Luxembourg City.
🌄 East — Echternach, Grevenmacher, Remich
Existing: ≈ 7,000 €/m²
Immotop Q1 2026: +0.5% on the quarter — the only region with a quarterly increase.
Promovillas advice: For patient buyers seeking characterful properties in a quality environment, the East offers unique opportunities.
🌲 North — Diekirch, Wiltz, Clervaux, Ettelbruck
Existing: ≈ 5,000-6,000 €/m²
Immotop Q1 2026: -3.4% on the quarter, -5.5% year-on-year.
Houses: up to -8.5% on the quarter (atHome Q1 2026).
Promovillas advice: The North is a market for life projects and characterful properties, not quick appreciation.
Rental Market in Brief
Apartment rents virtually flat (+0.3% on the quarter, atHome) but at historically high levels. House rents easing slightly (-2.2% on the quarter).
Source: atHome Q1 2026
What the Figures Don't Tell You
At Promovillas, what we observe daily is the gap between listed price and actual transaction price. In the current market, this gap has widened. Properties correctly priced from day one find buyers. Overpriced properties stagnate — and often sell below what a correct initial price would have achieved.
This is why valuation is the first — and most important — step in any sales project.
Conclusion
The Luxembourg residential real estate market in Q1 2026 sends a clear message: the correction is real but measured, existing properties are holding up better than new-builds, and regional disparities have never been more significant.
At Promovillas, with over 30 years on the Luxembourg real estate market, this is exactly the expertise we bring to every client.
Do you have a sale, purchase or investment project in Luxembourg?
Contact us for a confidential, personalised valuation of your property.
Sources: Observatoire de l'Habitat / Ministry of Housing Luxembourg (Q4 2025, published March 2026) · Immotop.lu (Q1 2026, published 7 April 2026) · atHome.lu (Q1 2026, published 2 April 2026)