The real estate market stabilized in 2024 in Luxembourg. This is the observation made by the online real estate portal atHome at the beginning of January. Concerning existing housing, houses recorded a decrease of 2.6% in the fourth quarter of 2024 compared to the end of 2023, while the prices of old apartments remained stable, as did the prices of new apartments.
A stabilizing or even downward trend for certain sectors, which does not reflect the EU curve. According to the latest figures published this Friday January 10 by Eurostat, house prices have followed an upward curve in the EU in recent months. In the third quarter of 2024, compared to the same period in 2023, house prices increased by 2.6% in the euro area and by 3.8% in the EU. Prices also increased in the third quarter compared to the second quarter, by 1.4%.
A decline in four countries
Four countries recorded an annual decrease in housing prices, including Luxembourg. Compared to the third quarter of 2023, prices saw a decrease of 1.7%. Two neighboring countries of the Grand Duchy are also among this quartet. And it is in France that this price drop is the most significant within the EU, with -3.5%. In Germany, the price reduction is around -0.7%. Belgium recorded an increase of 3.6% compared to the third quarter of 2023.
In a quarterly comparison, housing prices in Luxembourg increased very slightly, by 0.2%. A trend which is also observed in the three neighboring countries of the Grand Duchy.
Recovery expected to continue in 2025
The trend towards the stabilization of real estate prices in Luxembourg takes place, according to the atHome portal, in a context of extension of tax measures favoring real estate transactions and reductions in interest rates decided by the ECB and the Fed. These adjustments have already started to support demand after a long period of rising interest rates, “which constitutes an encouraging signal for 2025”, underline the portal’s real estate experts in summary.
In 2025, according to experts, the extension of tax measures and the reduction in interest rates should positively support activity and contribute to creating a favorable environment for the real estate market in 2025, despite some economic uncertainties.
Belgium
