Apartment Prices Tick Up for First Time in Six Quarters, STATEC Confirms

Apartment prices in Luxembourg ticked up 1.4% in the third quarter, the first quarter-on-quarter increase since the second quarter of 2024, STATEC confirmed in its housing index update on Tuesday morning. Detached-house prices, which have been more resilient throughout the cycle, rose 0.8%.

Transaction volumes remain weak. The 1,247 apartment sales recorded in Q3 are roughly a third below the 2022 quarterly peak of 1,860, and well below the ten-year quarterly average of 1,540. STATEC analysts attribute the price uptick to a combination of pent-up demand from prospective buyers who delayed purchases through 2024, a 50-bp drop in mortgage rates since spring, and the announced 3% VAT extension on new builds.