Recent data from the property listings site Immotop.lu shows a steady decline in asking prices from sellers of residential properties, indicating that, despite these reductions, current price levels are still insufficient to attract enough buyers to the market. While interest rates on housing loans have been gradually decreasing and overall loan volumes are , asking prices have fallen by 5.2% since the beginning of the year. These price adjustments suggest that a gap remains between sellers’ expectations and what buyers are willing to pay.

Average sale asking prices

Although prices vary between regions and localities, the national average has been on a downward trend, indicating that sellers are increasingly willing to accept lower property valuations. At €8,272 per square metre in November, asking prices are nearly 5.2% lower year-to-date than the €8,722 per square metre recorded in January 2024. Furthermore, prices are 13% lower than in mid-2022, when the national average topped €9,400 per square metre.

This decline in valuations could suggest that some sellers are under pressure to sell, or that the housing market is facing challenges at the high end, with transactions primarily occurring in mid- and lower-priced property segments.

Average rent asking prices

In contrast to the slowdown in the sales market, the rental market continues to experience growth. As of November 2024, the average asking price for rental properties stands at €28.49 per square metre, reflecting an increase of 6.8% since January.

This rise in rental prices is outpacing both inflation and wage growth, highlighting an increasing gap between rental affordability and household incomes. The ongoing upward pressure on rental prices signals persistent shortages in the rental housing market, with demand continuing to outstrip supply across much of the grand duchy.