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**Should you buy or rent a property in Luxembourg?** This question comes up often, especially in a changing market. While renting seemed more flexible and less risky in recent years, the trend is reversing in 2025. Between falling prices, rising rents, and the return of better banking conditions, **buying is once again a winning strategy**. Here is why.

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## 📉 1. Selling prices are (finally) dropping

Since 2022, the Luxembourg real estate market has experienced a **marked slowdown**. The surge in prices has given way to a correction phase.

👉 **Result:**
Many properties are now **offered at more reasonable prices**, with increased room for negotiation.

> According to the latest data, selling prices have fallen by **8 to 12%** in several of the country's communes between 2022 and 2024.

For buyers who have been waiting for the right moment, **negotiating power is finally back**.

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## 📈 2. Rents, on the other hand, keep rising

At the same time, **rents are continuing to rise**. Demographic pressure, housing shortages, and the quality of life in Luxembourg are driving up prices in the rental market.

> In Luxembourg-ville, **the average rent for a two-bedroom apartment now exceeds €2,000 per month**.

This represents **a significant expense... with no return on investment**. By comparison, **the monthly payments on a well-structured mortgage can be equivalent, or even lower, while allowing you to become a homeowner.**

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## 💡 3. Buying means investing in your future

Buying a property is not just about housing: **it is a solid wealth-building investment.**

* You **stabilize your monthly expenses**, unlike an indexed rent.
* You **build equity** over the course of your repayments.
* You **preserve your purchasing power** against inflation.

Even in a changing market, **well-located properties in Luxembourg maintain stable value over the long term**.

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## 🏦 4. More open banks, opportunities to seize

Good news: **Luxembourg banks are gradually relaxing their financing conditions.**

* Return of 30-year mortgages
* More stable interest rates
* More flexible conditions for first-time buyers
* Possibility to negotiate notary or administrative fees with certain sellers

👉 Result: **new buyer profiles can achieve homeownership**, even after the post-2022 tightening period.

---

## ✅ 5. Buying in 2025: a more strategic choice than ever

In a context of economic uncertainty, buying a property is becoming **a foundational decision**:

* You **protect your savings** from monetary erosion
* You **avoid continuous rent hikes**
* You **invest in a tangible asset**, in a stable and attractive country

💬 **In short**: buying is no longer reserved for the lucky or for seasoned investors. It is once again an accessible, reasoned, and secure path for many households.

Buy or Rent in Luxembourg in 2025?

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After a period marked by uncertainty and a wait-and-see attitude, the Luxembourg real estate market is entering 2025 with a wind of change. In 2023 and 2024, interest rate hikes, credit contraction, and inflation slowed down many transactions. Sellers had to adjust their expectations, while buyers had to deal with stricter financing conditions.

Today, signs of a gradual recovery are multiplying. But does this return to equilibrium mean lasting stabilization or a new cycle with still uncertain contours? This article decodes the trends to watch, the opportunities to seize, and the challenges the Luxembourg market will face in 2025.

## 1. Where does the Luxembourg market stand at the beginning of 2025?

### A slowly evolving market

Data available at the start of 2025 shows an overall stabilization of prices, with moderate corrections in certain areas, particularly in the new-build segment. While the spectacular price drops expected by some buyers have not materialized, the balance of power has rebalanced, prompting sellers to adopt a more realistic approach.

### Credit remains strictly regulated

Despite a lull in interest rates, lending conditions remain strict. Financial institutions are demanding more guarantees, which hinders homeownership for a portion of the working population, especially first-time buyers. On the other hand, stable profiles and solid investors are taking advantage of attractive negotiating margins.

### A slowdown in new construction

The decline in building permits observed since 2023 is already impacting the stock of available housing. High construction costs, demanding environmental standards, and land scarcity have slowed the momentum of new real estate, which risks maintaining a certain pressure on the residential market in the medium term.

## 2. Key factors redefining the market

### a) New political and tax measures

In response to the housing crisis, the Luxembourg government has introduced several measures designed to stimulate supply and encourage homeownership:

- temporary relief on registration duties,
- tax credits for energy renovations,
- support for affordable housing projects.

These initiatives aim to streamline transactions while adhering to a sustainable development approach.

### b) A more selective but persistent demand

Buyers are not absent from the market, but they are better informed, more patient, and more selective. Atypical or poorly positioned properties struggle to generate interest. Conversely, well-located, eco-efficient properties that meet current expectations (spacious living areas, outdoor spaces, proximity to amenities) continue to appeal.

## 3. What opportunities exist for sellers and investors?

### Windows of opportunity to leverage

For sellers, 2025 is a year of conditional opportunity. A correctly valued property, highlighted by professionals, can sell within a good timeframe, without having to slash its price. Utilizing strategies such as off-market sales, which are increasingly popular in the high-end segment, helps preserve value while targeting qualified buyers.

### Real estate investment becomes attractive again

After a period of decline, rental investment is once again a credible option, particularly in these segments:

- small units in urban areas,
- high energy performance housing (energy class A or B),
- or coliving in well-connected areas.

With rents remaining at a high level, rental yields stay competitive, especially if purchase prices are negotiated.

## 4. The challenges ahead

### The structural housing shortage

Even as the market adjusts, demand still vastly exceeds supply, particularly in major municipalities like Luxembourg-Ville, Bertrange, or Esch-sur-Alzette. Without an acceleration in construction and an easing of administrative procedures, this imbalance is likely to persist.

### Housing affordability

Household real estate purchasing power remains under pressure. The challenge of 2025 will be to find a balance between regulation, incentives, and the development of new models, such as participatory housing, intergenerational living, or cooperative projects.

### Conclusion

The year 2025 opens with a real estate market in transformation. Healthier, more rational, but also more demanding, this new cycle requires players—sellers, buyers, investors—to adopt a better-informed, more strategic, and more structured approach.

At Nextimmo, we support our clients at every stage of their real estate project with in-depth knowledge of the market and expertise tailored to this new reality.

Wondering about the right time to sell or buy in 2025?
Contact our team for a personalized valuation and advice tailored to your profile.

Luxembourg 2025: Towards a New Real Estate Era?

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Initially scheduled to expire on June 30, 2025, the tax measures in favor of housing will ultimately benefit from an **additional extension until September 30**. This extension was announced this Monday by the Minister of Finance, **Gilles Roth (CSV)**, through a new bill designed to support buyers.

### 📈 Strong recovery of the real estate market

The minister justifies this decision by the **sharp increase in real estate sales** observed since the beginning of the year: "Housing sales have more than doubled over the first four months of 2025 compared to the same period in 2024," he highlighted. A massive influx of requests would cause difficulties for **banks and notaries**, who would risk not being able to finalize all files on time.

According to him, this dynamic is the combined result of two factors: the **tax benefits granted to households** by the government, and a **drop in interest rates**, which together have strongly contributed to **reviving the real estate market**.

### 📋 Which measures are being extended?

The three-month grace period notably applies to:

* The **€20,000 tax credit** per individual on rental income,
* The **50% reduction of the taxable base** for registration and transcription duties,
* The **accelerated depreciation at 6%**,
* The **reduced taxation on capital gains from sales** (at a quarter of the global rate),
* The **capital gains exemption** for properties transferred for social use or meeting the **A+** energy standard.

These measures will remain accessible provided that:

* The **preliminary sales agreement has been registered** before June 30, 2025,
  **or**
* The **reservation contract has been submitted to the Registration Administration** before this date.

In this case, **the notary or the bank will have until September 30** to finalize the deed of purchase. A practical guide has been made available to assist those concerned.

### 🚫 No further extension planned

Questioned about a possible extension beyond September, Gilles Roth answered **in the negative**: "The three-month timeframe should be sufficient."

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## 🔐 The "Bëllegen Akt" maintained

Good news for future homeowners: the **notarial tax credit**, known as the *Bëllegen Akt*, will remain at **€40,000** after June 30, 2025. This assistance allows buyers to **pay no registration duties** for a property with a maximum value of **€571,000 per person** — or up to **€1,142,000 for a couple**.

A bill has been submitted on this subject and should, if all goes well, be adopted by the **Chamber of Deputies by summer**.

Housing Assistance: The Government Grants a Three-Month Extension

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This Thursday, June 5, 2025, the **European Central Bank (ECB)** announced a new cut to its main key interest rate, reducing the deposit rate by **0.25 points to 2%**. This marks the **eighth cut in a year**, a strong signal sent to households and businesses in the euro area... and **news to be closely monitored by players in the Luxembourg real estate market**.

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### 🔍 Context: inflation under control, but growth in question

Since mid-2024, the ECB has gradually eased its monetary policy as **inflation was brought back under control**. In May, it fell to **1.9%**, below the symbolic 2% mark. This paved the way for more accommodative rates to **support consumption and investment**, while the European economy faces sluggish demand and strong trade uncertainties, particularly with the United States.

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### 🏡 And in Luxembourg, specifically?

For Luxembourg, this key rate cut is **excellent news for real estate buyers**. In concrete terms:

* 📉 **Bank interest rates could fall further**, facilitating access to mortgages.
* 🏠 **The total cost of a real estate purchase could decrease**, making certain properties more affordable.
* 📈 **Demand could start rising again**, which would support the market recovery observed since early 2025.

At Nextimmo, we have already noticed an **increase in online valuations and listing submissions** in recent weeks, proof of renewed interest from owners and buyers.

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### 📊 Outlook: a window of opportunity to seize?

The ECB forecasts stable inflation around **2% until 2027**, with moderate wage growth. This scenario opens a **rare window of stability** after years of turbulence. If you are considering buying, selling, or investing, **now could be the ideal time to take action**.

And with the recent extension of **tax incentives for purchasing in Luxembourg until September 30, 2025**, conditions are particularly favorable to make your real estate project a reality.

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### 🤝 Nextimmo is here to support you

Our mission: **to help you navigate the Luxembourg market with the right tools**. Whether you are an owner, buyer, or investor, our platform offers you:

* **Free online valuations** in 2 minutes
* **Free publication of your listings** until September 30
* **Personalized advice and support** through our network of partner agents

---

📩 **Need a little help?** Contact us or start your valuation today on [nextimmo.lu](https://www.nextimmo.lu)

Key interest rate cut - an opportunity for real estate in Luxembourg?

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Buying your first home is an exciting but complex step, especially in a real estate market as tight and expensive as Luxembourg's. A lack of preparation or a bad decision can be costly. Here are the 10 most common mistakes to avoid to make your first purchase a lasting success.

## 1. Not knowing your borrowing capacity

Even before you start looking, it is essential to consult your bank or a mortgage broker to assess your realistic budget. Many buyers overestimate their purchasing power or forget to include additional costs (notary fees, application fees, guarantees).

## 2. Forgetting about hidden costs

Notary fees (around 7%), agency fees, taxes, condominium fees, and potential renovation work can amount to several thousand additional euros. Plan for a safety margin in your budget.

## 3. Buying on impulse

Falling in love with a property is important, but it shouldn't guide your decision alone. Objectively evaluate the property, the location, the price, the resale value, and compare it with other opportunities.

## 4. Not thinking long-term

What suits you today might not suit you in 5 years. An extra bedroom, a better location, or a space for working from home can quickly become essential.

## 5. Underestimating the importance of location

A good neighborhood guarantees a better quality of life and a better resale value. Prioritize proximity to transport and shops, and avoid poorly connected areas, even for a lower price.

## 6. Overlooking the technical condition of the property

Cracks, dampness, obsolete electrical installations... These details can weigh heavily. Do not hesitate to call on an expert or an architect for a thorough inspection.

## 7. Not reading legal documents carefully

Deeds, condominium regulations, diagnostic reports: do not sign anything without reading everything. If necessary, get assistance from a notary or a trusted professional.

## 8. Forgetting about potential financial aids

Tax credits, first-time buyer assistance, municipal grants: in Luxembourg, several schemes can help you reduce the cost of your purchase. Do your research.

## 9. Wanting to manage everything alone

Real estate is a profession. Surround yourself with a good agent, a responsive notary, and, if possible, a broker to negotiate your financing as best as possible. Their expertise can prevent many mistakes.

## 10. Thinking that buying is always better than renting

In some cases, depending on your situation, your medium-term projects, or the market, renting might be more relevant. Buying must meet a real need and be approached with a strategic plan.

## In conclusion

Buying your first real estate property in Luxembourg is a serious project. Good preparation, professional advice, and a long-term vision are your best allies for success.

Do you have a project in mind? Contact the team at [Nextimmo.lu](https://nextimmo.lu) for personalized and stress-free guidance.

10 Mistakes to Avoid When Buying Your First Property in Luxembourg

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While mortgage rates are at their lowest level since March 2023, the month of April saw a **moderate increase** in real estate loans in Luxembourg, confirming the persistent interest of buyers — particularly **young families** — despite an evolving tax and monetary context.

## A stable market, driven by favorable financing conditions

The latest figures published by the **Banque centrale du Luxembourg (BCL)** reveal that **new housing loans reached 539 million euros in April 2025**, an increase of **1.9% compared to March**. A moderate, yet significant trend: in January, volumes reached 446 million, then 472 million in February.

This market stability is largely explained by two factors:

* The **gradual decline in interest rates**: the ECB has cut its rates eight times since June 2024, encouraging more favorable credit dynamics.
* The **temporary tax credit** implemented by the Luxembourg state, incentivizing buyers to finalize their projects before **June 30, 2025**, the scheduled end date of the measure.

## Historically low rates… but only for a limited time

One-year fixed rates are currently close to **3.5%**, a floor unmatched since March 2023. For longer-term loans (over 10 years), rates hover around **3.45%**, reflecting an **anticipation of stabilization** by banks: only one more cut — of 25 basis points — could still occur in 2025.

## Who is borrowing today?

The data shows that the majority of new credits involve **long-term loans (25 to 35 years)**, typical of **young households and first-time buyers** looking to settle down long-term.

This trend confirms a certain return of confidence, but **remains fragile**: without tax support in the second half of the year, and if prices start to rise again, **the momentum could slow down**. Sellers, particularly developers, are therefore advised to remain cautious with their pricing policies.

## Key takeaways

* 📉 Mortgage rates at their lowest in two years
* 📊 +1.9% in new loans in April (vs. March)
* 🧾 End of the tax credit scheduled for **June 30, 2025**
* 🏡 Loans predominantly over **25–35 years**
* ⚠️ Expected slowdown in rate cuts

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💬 **Do you have a real estate project to finalize before the end of the tax incentives?**
Now is the time to act. Our team is at your disposal to assist you in your search or in selling your property.

Contact us or publish your listing for free on **Nextimmo.lu** until **September 30, 2025**.

Real Estate: Slight Increase in Mortgages in April, Driven by Attractive Rates

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In recent years, online valuation tools have been experiencing a real boom in Luxembourg. Primarily developed by real estate platforms, these tools rely on increasingly powerful algorithms capable of providing an **indicative value** for a residential property located in the Grand Duchy.

## A simple and effective tool offered by Nextimmo

At **Nextimmo**, we have implemented a simple, fast, and reliable **online real estate valuation tool**. It allows any owner to get an idea of their property's value in just a few minutes.

👉 To access it, visit [nextimmo.lu/estimation](https://nextimmo.lu/estimation) and fill out the dedicated form step by step.
You will need to enter the **main characteristics** of your property (type, surface area, location, condition, etc.). Once the form is completed, an indicative valuation will automatically be provided to you.

## What you need to know before using an online valuation tool

Our tool relies on **algorithms developed by our IT team**, powered by **public open data** that is regularly updated.
The goal is to provide a valuation that is as **realistic and current as possible**.

However, it is important to note that:

* The valuation remains **indicative**: as the Luxembourg real estate market is highly dynamic, some properties may be overvalued or undervalued depending on the context.
* The **accuracy of the data** you enter in the form is essential. For example, **confusing the total surface area with the living area** can significantly distort the result.
* **Additional characteristics** must be mentioned: exteriors (terrace, balcony, garden, garage, parking), year of construction, heating type, energy class, condition of the property, etc.
* If **works have been carried out or are planned**, do not hesitate to mention them along with an estimated amount. This strongly influences the calculated value.

## Online valuation: a good starting point, but not an official appraisal

Online valuation is an excellent tool to get an initial idea, but it **does not replace an on-site appraisal** conducted by a professional.
Certain specificities (unobstructed view, high-quality materials, nuisances…) can only be assessed in person.

For an **accurate and personalized valuation**, you can call upon one of our **experienced agents**.
➡️ The visit lasts about an hour, and you will receive a **comprehensive valuation report** in the language of your choice within **48 hours**.
This service is generally **free and without obligation**, unless you require a **formal written report** (in the context of an inheritance, divorce, tax declaration, or dispute). In this case, fees may apply — we will inform you with full transparency.

## In summary

* Valuing your property online is simple, fast, and free.
* The Nextimmo tool relies on reliable data, but the result remains indicative.
* An on-site valuation remains the most accurate solution if you want to sell, rent, or prove the value of your property.

---

🔎 Do you want to **get a free valuation**?
➡️ Visit [nextimmo.lu/estimation](https://nextimmo.lu/estimation)

📞 Do you prefer an **on-site appraisal**?
[Contact our teams](https://nextimmo.lu/contact) to schedule an appointment with a **local agent**.

Getting an Online Valuation in Luxembourg: Everything You Need to Know

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The Chamber of Deputies has just validated a highly anticipated measure for future homeowners: the tax credit on notarial deeds — better known as the **"Bëllegen Akt"** — is officially increased from **30,000 to 40,000 euros per person**.

### A measure that eases buyers' budgets

Today, Members of Parliament voted in favor of **bill n°8540**, which aims to strengthen the real estate purchasing power of Luxembourg residents. This reform allows individuals wishing to acquire a primary residence to **significantly reduce registration fees**.

In practical terms, **a couple buying a house or apartment together to live in** will now be able to benefit from up to **80,000 euros in tax credits** on the fees related to the notarial deed.

### Welcome support in a strained market

In a context where real estate prices remain high and financing is becoming more complex, this increase in the Bëllegen Akt is perceived as a **significant boost**. It can make the difference between a project that remains a dream and a purchase that becomes a reality.

### Who can benefit from it?

This enhanced tax credit applies to:

* Luxembourg **residents**,
* For the **purchase of a property for personal use** (primary residence),
* Up to a single amount of €40,000 per person (a non-renewable allowance per individual, rather than per property).

### An opportunity to seize

At **Nextimmo**, we assist buyers with their real estate projects every day. This measure reinforces our mission: **making homeownership more accessible**.

Are you considering buying a property in Luxembourg? This might be the perfect time to take action. Contact our teams to benefit from personalized support.

Good news for buyers: the "Bëllegen Akt" increases to €40,000

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While some observers were hoping for a recovery at the beginning of 2025, **the numbers are clear**: the Luxembourg residential market remains at a standstill. And a slight drop in prices or a few tax adjustments are not changing the game.

### 📉 Sales in free fall

According to the Observatoire de l’habitat, apartment sales **fell by 34.6%** in the 1st quarter of 2025 compared to the previous quarter. Houses? -35.5%. Only the year-on-year comparison seems positive... but solely because the 1st quarter of 2024 was historically low.

👉 Sales of new-build homes (VEFA) remain **at less than 40% of their pre-crisis levels**, and existing properties are stagnating. The result: a market that is **operating at a sluggish pace**, with many projects suspended.

### 💶 Stable prices... on the surface

The well-known hedonic index only dropped by 1.2% over the quarter, and even shows a slight annual increase of 0.9%. But this stability actually hides **significant volatility** depending on property types, locations, or their condition. Above all, it reflects **the widespread indecision** between buyers and sellers.

In other words: **prices are no longer rising, but they aren't attracting buyers either**.

### 🏘 Rents practically frozen

On the rental side, the situation is similar. Apartment rents only increased by 1.5% in one year — barely above inflation. This lack of momentum reveals a cautious demand and a severe shortage of affordable supply.

Exceptions:

* 📈 +12.2% for rental houses (but limited supply)
* 🛏 +2.2% for furnished rooms

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## 📆 June, a pivotal month

The temporary extension of certain tax incentives (reduced registration duties, accelerated depreciation, etc.) until **June 30, 2025**, has slowed down purchasing decisions. But once this deadline passes, **the risk of a new market freeze is real**.

Finance Minister Gilles Roth (CSV) has confirmed that:

* A preliminary sales agreement (compromis) or reservation contract signed before June 30 would allow buyers to benefit from the incentives until September 30.
* A "Bëllegen Akt" tax credit of €40,000 is now officially enacted.

Positive measures, but **insufficient to truly revive the market** without a more ambitious construction policy.

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## 🤔 What to do if you are a seller or buyer today?

At **Nextimmo**, we are following these developments very closely. We help individuals make the right decisions through:

* 🧠 AI-based valuation tools
* 📊 A realistic pricing strategy
* 📞 Human or digital support

**Do you have a real estate project?** Don’t wait for the market to dictate its terms.

👉 [Get a free valuation of your property](https://nextimmo.lu/estimation) or [contact us](https://nextimmo.lu/contact) to discuss your situation.

The real estate market remains tight in Luxembourg

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PRESS RELEASE - Luxembourg, July 15, 2025

In a constantly evolving market, Nextimmo, the first hybrid real estate agency in Luxembourg, is launching a brand-new remote property valuation service based on voice artificial intelligence.

Until now, the online valuation tools offered by the country's major real estate platforms relied on forms to be filled out. These solutions, although effective, remained restrictive for users. Today, Nextimmo is taking a new step forward by offering a fully voice-based experience that is simple, seamless, and accessible to everyone.

**A first in Luxembourg: property valuation by phone with an AI agent**

Thanks to Victoria, our new intelligent voice agent, property owners can now estimate the value of their house or apartment by simply answering a few questions... out loud! Available 24/7, Victoria converses naturally with callers in French, German, or English, adapting to their answers to refine the valuation.
Simply dial (+352) 20 30 27 to start the conversation. In just a few minutes, the user obtains a personalized indicative value for their property, without having to fill out a single form.

**An innovative service for a demanding market**

"We believe it is possible to combine technology with human proximity," explains Rudolphe ABEN, Director of Nextimmo. "Our goal is to make life easier for sellers while providing them with high-performing, accessible, and intelligent tools. This new solution offers real time-savings and allows everyone to get a valuation effortlessly, whether at home, in their car, or at the office."

**Direct access to valuation, online or by phone**

For those who still prefer traditional forms, Nextimmo is keeping its online valuation tool, accessible via:

🔗 [https://nextimmo.lu/estimation](https://nextimmo.lu/estimation)
 
But for a 100% voice and human-like experience, Victoria is ready and waiting for you now at **(+352) 20 30 27.**

**About Nextimmo**
Nextimmo is a hybrid real estate agency based in Luxembourg, combining technology, advanced marketing, and human support. It offers tailor-made services for sellers and buyers, and stands out with its collaborative and innovative approach to the real estate market.

Blog and real estate advices