STATEC's hedonic index rose 0.7% in the first quarter of 2026 and 1.7% over twelve months, confirming that Luxembourg's deep housing correction has given way to a modest recovery led by houses and rebounding transactions — even as advertised rents climb far faster than incomes.
STATEC and the Observatoire de l'Habitat report Luxembourg house prices flat year-on-year in late 2025 while advertised rents rose 3%, deepening the divide between sidelined buyers and a tightening rental market.
Luxembourg's official housing report for the first quarter of 2026 shows sale prices stabilising, with the STATEC index up 0.7% on the quarter and 1.7% over the year, while advertised apartment rents rose 4.4% over twelve months — nearly three times inflation. The divergence leaves buyers facing a calmer, cheaper-to-finance market while new tenants continue to absorb the steepest increases.
Housing is Luxembourg's defining domestic challenge: prices have far outpaced incomes, driven by population growth, scarce buildable land, and limited supply. We lay out the forces at work.