Authored by the expert who managed and guided the team behind the Luxembourg Property Pack
Everything you need to know before buying real estate is included in our Luxembourg Property Pack
If you're curious about how much it costs to buy a home in Luxembourg in 2026, you're in the right place.
We constantly update this blog post with the latest official data from Luxembourg's Housing Observatory and other authoritative sources.
Below, you'll find current prices, neighborhood breakdowns, and practical examples to help you understand the Luxembourg property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Luxembourg.
Insights
- New-build apartments in Luxembourg cost about 32% more per square meter than existing apartments, with new builds averaging around 10,000 euros per sqm in Q3 2025.
- The average apartment sold in Luxembourg in Q3 2025 cost approximately 725,000 euros, making it one of Europe's most expensive housing markets.
- Luxembourg City's Kirchberg district commands the highest prices, with existing apartments ranging from roughly 7,600 to 14,800 euros per sqm.
- Buyers in Luxembourg typically negotiate 3% to 6% off the asking price, with larger discounts for older properties needing renovation.
- Over the past decade, Luxembourg property prices have risen about 68% in nominal terms, but only around 30% when adjusted for inflation.
- Esch-sur-Alzette offers the most affordable entry point, with existing apartments averaging around 4,300 to 9,000 euros per sqm.
- Transaction taxes and fees in Luxembourg typically add about 7% to the purchase price, though the "Bëllegen Akt" tax credit can reduce this by up to 40,000 euros per buyer.
- Around 70% of residential property transactions in Luxembourg involve apartments, reflecting the country's compact urban development.
What is the average housing price in Luxembourg in 2026?
The median housing price is more telling than the average because it represents what a typical buyer actually pays, without being skewed upward by a small number of very expensive luxury sales.
We are writing this as of the first half of 2026, using the latest Q3 2025 transaction data from Luxembourg's official Housing Observatory, which we manually verified against government sources.
The estimated median home price in Luxembourg in 2026 is around 780,000 euros (approximately $920,000 or €780,000), while the average home price sits higher at roughly 900,000 euros (approximately $1,060,000 or €900,000). This gap exists because expensive houses and luxury apartments pull the average upward.
About 80% of residential property transactions in Luxembourg in 2026 fall within a price range of 450,000 to 1,250,000 euros (roughly $530,000 to $1,470,000).
A realistic entry-level purchase in Luxembourg in 2026 would cost between 280,000 and 380,000 euros ($330,000 to $448,000), which typically gets you a small existing one-bedroom apartment of 35 to 45 sqm in Esch-sur-Alzette in an older building.
Luxury properties in Luxembourg in 2026 generally range from 1.8 to 3.5 million euros ($2.1 to $4.1 million), which would get you a renovated 3 to 4 bedroom penthouse of 160 to 220 sqm in prime Luxembourg City neighborhoods like Kirchberg, Belair, or Limpertsberg with a terrace and parking.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in Luxembourg.
Are Luxembourg property listing prices close to the actual sale price in 2026?
In Luxembourg in 2026, closed sale prices are typically 3% to 6% below the last advertised asking price.
This discount happens because many sellers still price their properties based on peak 2021-2022 expectations, while buyers factor in current financing costs and market conditions. The gap is largest for older homes needing renovation and for properties that were initially overpriced.
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What is the price per sq m or per sq ft for properties in Luxembourg in 2026?
As of early 2026, existing apartments in Luxembourg average around 7,600 euros per sqm (roughly 707 euros per sqft, or $8,960 per sqm and $833 per sqft). New-build apartments sold off-plan (VEFA) average around 10,000 euros per sqm (roughly 930 euros per sqft, or $11,800 per sqm and $1,100 per sqft).
Small units like studios and one-bedrooms in prime central locations have the highest price per sqm because entry-level buyers compete intensely for them, while larger older units farther from the city center have the lowest price per sqm due to renovation needs and a narrower buyer pool.
In Luxembourg in 2026, Luxembourg City commands the highest prices, with existing apartments averaging around 10,000 euros per sqm and ranging from roughly 7,000 to 13,500 euros per sqm. Wiltz in the north offers the lowest prices, with existing apartments averaging around 5,000 euros per sqm and ranging from roughly 3,300 to 6,800 euros per sqm.
How have property prices evolved in Luxembourg?
Compared to one year ago, Luxembourg property prices in 2026 are up roughly 4.6% in nominal terms, or about 2% after adjusting for inflation. This recovery happened because financing conditions stabilized after the 2023 interest rate shock, bringing buyers back to a market where supply remains tight.
Compared to ten years ago, Luxembourg property prices have risen approximately 68% in nominal terms, or about 30% in real (inflation-adjusted) terms. This long-term surge reflects Luxembourg's strong job growth and cross-border demand combined with very limited buildable land in the most desirable areas.
By the way, we've written a blog article detailing the latest updates on property price variations in Luxembourg.
Finally, if you want to know whether now is a good time to buy a property there, you can check our pack covering everything there is to know about the housing market in Luxembourg.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Luxembourg versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What types of properties are available and how much do they cost in Luxembourg in 2026?
In Luxembourg's property market in 2026, existing apartments make up about 55% of transactions, new-build apartments account for roughly 15%, houses represent around 25%, and niche properties like penthouses and villas make up the remaining 5%, reflecting the country's compact urban landscape and apartment-focused development.
In Luxembourg as of the first half of 2026, studios and small one-bedrooms (30-45 sqm) typically cost 300,000 to 450,000 euros ($354,000 to $530,000). One to two bedroom apartments (50-80 sqm) range from 450,000 to 850,000 euros ($530,000 to $1,000,000). Family apartments (90-120 sqm) cost 850,000 to 1.3 million euros ($1,000,000 to $1,530,000). Townhouses and semi-detached homes (120-180 sqm) range from 1.1 to 1.9 million euros ($1,300,000 to $2,240,000). Detached houses (180-260 sqm) cost 1.6 to 2.8 million euros ($1,890,000 to $3,300,000). Prime penthouses and villas start at 2 million euros and can reach 5 million euros ($2,360,000 to $5,890,000).
If you want to know more, you should read our dedicated analyses:
How do property prices compare between existing and new homes in Luxembourg in 2026?
New-build apartments in Luxembourg in 2026 cost approximately 32% more per square meter than existing apartments, with new builds averaging around 10,000 euros per sqm compared to 7,600 euros per sqm for resales.
This premium exists because new builds come with modern specifications, better energy efficiency, and updated layouts, plus developer pricing reflects current construction costs and the fact that new-build units tend to be smaller, which pushes the per-sqm price higher.
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How do property prices vary by neighborhood in Luxembourg in 2026?
Kirchberg in Luxembourg City is popular with expats working at EU institutions and features modern high-rise apartments close to offices, schools, and amenities. Prices here range from roughly 535,000 to 1,040,000 euros ($630,000 to $1,230,000) for a 70 sqm apartment because demand from international workers keeps values at the top of the market.
Strassen offers a close-in suburban feel with easy access to Luxembourg City and attracts families looking for more space. A 70 sqm apartment here costs between 497,000 and 876,000 euros ($586,000 to $1,030,000) because it combines city accessibility with a quieter residential environment.
Esch-sur-Alzette in the south provides the most affordable entry point for buyers in Luxembourg in 2026. A 70 sqm apartment costs between 302,000 and 627,000 euros ($356,000 to $739,000) because it is farther from the capital and has traditionally been an industrial area now undergoing renewal.
You will find a much more detailed analysis by areas in our property pack about Luxembourg. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Profile | Price Range (70 sqm apt) | Price per sqm | Price per sqft |
|---|---|---|---|---|
| Kirchberg | Expat / EU institutions | €535k-€1.04m ($631k-$1.23m) | €7,650-€14,800 ($9,000-$17,400) | €710-€1,375 ($837-$1,620) |
| Limpertsberg | Family / schools | €525k-€1.02m ($619k-$1.20m) | €7,500-€14,500 ($8,850-$17,100) | €697-€1,350 ($821-$1,591) |
| Belair | Premium / residential | €520k-€1.01m ($613k-$1.19m) | €7,450-€14,400 ($8,770-$16,960) | €691-€1,337 ($814-$1,576) |
| Merl | Family / parks | €501k-€970k ($590k-$1.14m) | €7,160-€13,850 ($8,440-$16,330) | €665-€1,287 ($784-$1,517) |
| Gasperich | New development | €496k-€960k ($585k-$1.13m) | €7,090-€13,720 ($8,360-$16,170) | €659-€1,274 ($777-$1,502) |
| Bonnevoie | Central / value | €462k-€894k ($544k-$1.05m) | €6,600-€12,780 ($7,780-$15,060) | €613-€1,187 ($723-$1,404) |
| Hollerich | Commuter / mixed | €446k-€868k ($526k-$1.02m) | €6,400-€12,370 ($7,540-$14,580) | €594-€1,149 ($700-$1,354) |
| Gare | Central / entry | €438k-€847k ($516k-$998k) | €6,260-€12,100 ($7,370-$14,260) | €581-€1,125 ($685-$1,327) |
| Strassen | Suburban / expat | €497k-€876k ($586k-$1.03m) | €7,110-€12,510 ($8,380-$14,750) | €660-€1,162 ($778-$1,370) |
| Bertrange | Suburban / family | €430k-€888k ($507k-$1.05m) | €6,150-€12,690 ($7,250-$14,960) | €571-€1,179 ($673-$1,389) |
| Hesperange | Family / suburbs | €398k-€780k ($469k-$920k) | €5,680-€11,140 ($6,690-$13,130) | €528-€1,035 ($622-$1,222) |
| Esch-sur-Alzette | Value / south | €302k-€627k ($356k-$739k) | €4,320-€8,960 ($5,090-$10,560) | €401-€833 ($472-$982) |
How much more do you pay for properties in Luxembourg when you include renovation work, taxes, and fees?
When buying property in Luxembourg in 2026, total costs including taxes, fees, and potential renovation typically add 7% to 22% on top of the purchase price, depending on the property condition and your eligibility for tax credits.
For a property costing around 170,000 euros ($200,000), you would pay approximately 12,000 euros in transaction taxes and fees (about 7% of the price). If the property needs a light renovation, expect to add another 30,000 to 45,000 euros, bringing your total to roughly 212,000 to 227,000 euros ($250,000 to $267,000).
For a property around 425,000 euros ($500,000), transaction taxes and fees would be approximately 30,000 euros. With a moderate renovation budget of 50,000 to 80,000 euros for a 60 sqm apartment, your all-in cost would reach roughly 505,000 to 535,000 euros ($595,000 to $630,000).
For a property around 850,000 euros ($1,000,000), expect to pay approximately 60,000 euros in transaction costs. If you are buying a larger home needing significant updates at around 150,000 to 200,000 euros in renovation, your total investment could reach 1.06 to 1.11 million euros ($1,250,000 to $1,310,000).
By the way, we keep updated a blog article detailing the property taxes and fees to factor in the total buying cost in Luxembourg.
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in Luxembourg
| Expense | Category | Estimated Cost |
|---|---|---|
| Registration duty | Taxes | 6% of the purchase price. This is the main transfer tax paid to the Luxembourg government when the property changes hands. It applies to the full declared sale price. |
| Transcription duty | Taxes | 1% of the purchase price. This covers the cost of recording the property transfer in the official land registry. Combined with registration duty, total transfer taxes reach 7%. |
| Bëllegen Akt tax credit | Tax relief | Up to 40,000 euros per buyer ($47,100). Eligible first-time buyers and those meeting specific conditions can claim this credit to reduce or eliminate transfer taxes. Couples buying together may each claim it. |
| Notary fees | Fees | Approximately 1,500 to 4,000 euros ($1,770 to $4,710). These cover the notary's services for drafting the deed, conducting searches, and registering the transaction. Fees vary based on property value and complexity. |
| Light renovation | Renovation | 800 to 1,000 euros per sqm ($940 to $1,180 per sqm). This covers cosmetic updates like painting, flooring, and minor fixture replacements. For a 50 sqm apartment, expect 40,000 to 50,000 euros. |
| Full renovation | Renovation | 1,200 to 1,500 euros per sqm ($1,410 to $1,770 per sqm). This includes kitchen and bathroom overhauls, electrical updates, and structural improvements. For a 100 sqm home, budget 120,000 to 150,000 euros. |
We made this infographic to show you how property prices in Luxembourg compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What properties can you buy in Luxembourg in 2026 with different budgets?
With a budget of $100,000 (roughly 85,000 euros), there is no realistic residential property purchase available in Luxembourg in 2026 because this amount falls well below even the smallest studio apartments on the market.
With $200,000 (roughly 170,000 euros), standard residential purchases remain extremely unlikely in Luxembourg in 2026, though you might occasionally find very small units requiring major renovation, partial ownership arrangements, or properties just across the border in neighboring countries.
With $300,000 (roughly 255,000 euros), you can find entry-level options in Luxembourg in 2026: an existing studio of about 35 sqm in Esch-sur-Alzette in an older building with basic finishes, a small one-bedroom of about 40 sqm in southern communes needing updates, or a studio of 30 to 35 sqm in less central locations with limited amenities.
With $500,000 (roughly 425,000 euros), you enter the mainstream market in Luxembourg in 2026: an existing one-bedroom of about 50 sqm in Esch-sur-Alzette in decent condition, a one-bedroom of about 45 sqm in Bonnevoie or near the Gare in an older building without parking, or a small two-bedroom of about 65 sqm in the Hesperange area in older stock.
With $1,000,000 (roughly 850,000 euros), you have solid family options in Luxembourg in 2026: an existing two-bedroom of about 90 sqm in Strassen in a decent building with parking, a three-bedroom of about 105 sqm in Merl or Gasperich in an older building with good renovation, or a small townhouse of 120 to 140 sqm in Hesperange commune that is not brand new with a small plot.
With $2,000,000 (roughly 1,700,000 euros), you can access comfortable houses or prime apartments in Luxembourg in 2026: a townhouse of 160 to 190 sqm in Bertrange in good condition on a family-oriented street, a detached house of 180 to 220 sqm in close-in communes like Steinsel or Walferdange with a good energy profile, or a large apartment of 150 to 180 sqm in Luxembourg City's prime districts with high-quality renovation.
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in Luxembourg.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Luxembourg, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Luxembourg Housing Observatory (Prix de vente) | This is the official government housing observatory publishing notary-deed closed transaction statistics for Luxembourg. | We used it as the backbone for average price-per-sqm levels for existing and new-build apartments. We also used it for average apartment transaction values. |
| Ministry of Housing Commune Price Data | This official Excel dataset breaks prices down by geographic area using the same notarial data pipeline. | We used it to identify high and low price areas across Luxembourg. We also used it to build the neighborhood price range table. |
| Housing Observatory Q1 2025 Analysis Report | This official methodology-heavy report combines STATEC and Housing Observatory data on transaction patterns. | We used it to describe market context and activity shifts. We also used it to explain why averages can move based on what types of properties sell. |
| BIS Residential Property Price Index (via FRED) | This international macro dataset from the Bank for International Settlements is updated regularly and sourced from national data. | We used it to calculate how prices compare to one year ago and ten years ago on a consistent index basis. We also used it to compute inflation-adjusted real changes. |
| Eurostat HICP Inflation for Luxembourg (via FRED) | This is the EU's standard harmonized inflation measure used for cross-country comparability. | We used it to inflation-adjust longer-term price changes for real versus nominal comparisons. We also used it as a reality check for purchasing power changes. |
| European Central Bank EUR/USD Rate | This is the eurozone's central bank publishing the reference exchange rate widely used for reporting. | We used it to convert euros into US dollars consistently throughout the article. We treated the late December 2025 rate as our January 2026 anchor. |
| Guichet.lu Property Tax Guidance | This is the official government portal describing binding fees and taxes for property purchases in Luxembourg. | We used it to describe typical buyer costs including registration and transcription duties. We also used it to build the all-in cost examples. |
| Guichet.lu Bëllegen Akt Tax Credit | This official source details the tax credit mechanism that can reduce purchase costs for eligible buyers. | We used it to explain how buyers can reduce the standard 7% transaction tax burden. We also used it to note the 40,000 euro per-buyer credit limit. |
| STATEC (Luxembourg Statistics) | This is Luxembourg's national statistics institute providing official demographic and economic data. | We used it to cross-reference population and housing stock figures. We also used it to validate market size and transaction volume estimates. |
| Chambre des Notaires du Luxembourg | This is the official notary chamber that processes all property transactions in Luxembourg. | We used it to understand the transaction process and typical notary fee ranges. We also used it to confirm how closed transaction data is collected. |
| atHome.lu | This is Luxembourg's largest real estate portal with comprehensive current listings across the country. | We used it to verify that our price range examples match actual listed properties. We also used it to understand current market inventory patterns. |
| Immotop.lu | This is another major Luxembourg property portal providing broad market visibility. | We used it to cross-check listing prices and property availability across different areas. We also used it to validate our neighborhood characterizations. |
| LISER (Luxembourg Institute of Socio-Economic Research) | This is an independent research institute that publishes academic-quality housing market studies. | We used it to understand structural factors driving Luxembourg's housing market. We also used it to validate our supply constraint explanations. |
| Banque Centrale du Luxembourg | This is Luxembourg's central bank publishing financial stability reports including real estate analysis. | We used it to understand financing conditions affecting buyer behavior. We also used it to validate interest rate impact on market activity. |
| CSSF (Commission de Surveillance du Secteur Financier) | This is Luxembourg's financial regulator overseeing mortgage lending practices. | We used it to understand mortgage market conditions. We also used it to verify lending standard information affecting buyers. |
| Ville de Luxembourg | This is the official website of Luxembourg City providing local planning and development information. | We used it to understand neighborhood characteristics within the capital. We also used it to verify district-level development patterns. |
| Ville d'Esch-sur-Alzette | This is the official website of Luxembourg's second-largest city providing local market context. | We used it to understand why Esch offers more affordable options. We also used it to verify urban renewal projects affecting values. |
| Commune de Strassen | This is the official commune website providing local planning and amenity information. | We used it to characterize Strassen as a family-friendly suburb. We also used it to understand local demand drivers. |
| Commune de Bertrange | This is the official commune website for one of Luxembourg's popular residential suburbs. | We used it to understand Bertrange's appeal to families and expats. We also used it to verify school and amenity access. |
| Commune de Hesperange | This is the official commune website for a key suburban residential area south of the capital. | We used it to understand housing stock characteristics in Hesperange. We also used it to verify the family-oriented market profile. |
| OECD Housing Data | This international organization provides comparable housing market data across developed economies. | We used it to put Luxembourg prices in international context. We also used it to validate long-term price trend calculations. |
| Eurostat Housing Price Statistics | This is the EU's official statistics office providing harmonized housing data across member states. | We used it to verify Luxembourg's position within European housing markets. We also used it to cross-check price index movements. |
| IMF Luxembourg Country Data | This international financial institution provides economic context and housing market assessments. | We used it to understand macroeconomic factors affecting Luxembourg's housing market. We also used it to validate demand drivers from economic growth. |
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