Luxembourg Property Prices per m² Drop by 1.8% in Q1 2026

On Wednesday 8 April 2026, Luxembourg real estate portal Immotop.lu published its report on property prices in Luxembourg in the first quarter (Q1) of 2026.

The figures in the report are based on property listings for sale published on the Immotop.lu platform. The data is calculated over a twelve-month period to provide an in-depth analysis of changes in average prices per square metre.

In Q1 2026, the average price of properties for sale in Luxembourg stood at €8,177/m², representing a year-on-year decrease of 2.3% compared to Q1 2025 and a quarterly decline of 1.8% compared to Q4 2025. The report noted that this trend confirms the continuation of the price correction observed at the end of 2025, although the adjustment remains gradual.

According to the report, energy-efficient homes continued to command a significant premium. In Q1 2026, an energy class A property cost an average of €9,104/m², down 2.1% compared to the previous quarter, while an energy class G property averaged €6,968/m², a decrease of 1.4%. This represents a price difference of €2,136/m² between the two energy classes.

Looking at regional trends, prices showed mixed developments. Over one year, prices declined in all regions, with the sharpest drop recorded in the North (-5.5%), followed by the East (-3.5%), Centre (-2.9%) and West (-1.1%), while the South saw a modest increase of 1.2%. On a quarterly basis, prices fell in the Centre (-2.4%), South (-1.5%) and North (-3.4%), remained stable in the West (0%) and increased slightly in the East (+0.5%). This reflects an increasingly segmented market, where local attractiveness, affordability and property quality are playing a greater role in price developments.

The price gap between energy-efficient and less efficient homes also varied by region. In the Centre, energy class A-C properties averaged €10,534/m², compared to €8,975/m² for class F-G, a difference of €1,559/m². In the South, the gap was widest at €1,696/m², while differences of €854/m² in the West, €1,423/m² in the East and €1,019/m² in the North were also observed.

In Luxembourg City, the average price per square metre stood at €11,569/m² in Q1 2026, marking a quarterly decrease of 2.5%. Despite this decline, property prices in the capital remain at a high level compared to the national average. The most expensive districts were Belair (€12,864/m²), Neudorf-Weimershof (€12,529/m²) and Gasperich (€12,087/m²). At the more affordable end of the scale were Weimerskirch (€8,586/m²), Cents (€8,842/m²) and Dommeldange (€9,546/m²).

The rental market, meanwhile, remains under significant pressure. In Q1 2026, the average rent in Luxembourg reached €31.6/m², up 1.6% compared to the previous quarter and 6.4% year-on-year. The report highlighted that strong demand and limited supply continue to drive rental prices upwards.