Luxembourg's real estate market sees strong recovery
After a period of decline in 2024, Luxembourg's real estate sector is experiencing a robust recovery, with prices per square meter on the rise in Q1 2025. This upward trend signals a dynamic market, crucial for businesses evaluating their commercial property strategies.
The average price per square meter for sale in the Grand Duchy stood at 8,545 euros in Q3 2025, reflecting a +0.7% increase year-on-year and a +0.1% rise compared to Q2 2025.
This market resurgence indicates a healthy economic environment, making Luxembourg an attractive location for business expansion or relocation.
Strategic location: understanding regional price dynamics
For businesses, choosing the right location is paramount, and Luxembourg's diverse regions offer varying price points and strategic advantages. The central region remains the most expensive, with prices exceeding 10,500 euros/m², reflecting its premium status and accessibility. In contrast, the northern region presents more cost-effective options, with prices around 6,000 euros/m².
This significant variation allows businesses to align their property choices with their budget, operational needs, and desired image, whether seeking a prestigious central address or a more economical base for operations or logistics.
Luxembourg city hotspots: The Gare District's remarkable growth
Within Luxembourg City, the average price reached 12,278 euros/m², showcasing its status as a prime business hub. While the Belair district retains its position as the priciest at 14,566 euros/m², the most notable development is the significant growth in the Gare district. This area experienced the largest quarterly increase of +3.5%, with prices reaching 11,164 euros/m².
This surge makes the Gare district a dynamic and increasingly attractive area for businesses looking for office space, offering excellent connectivity and a vibrant urban environment. Its growth suggests it's a district to watch for future commercial investments.
The impact of energy efficiency on commercial property values
Beyond location, energy efficiency is an increasingly critical factor influencing commercial property values and operational costs. Properties with a Class A energy rating command an average of 2,373 euros/m² more than those in Class G.
For businesses, investing in energy-efficient office or warehouse space not only contributes to sustainability goals but also results in significant long-term savings on utility bills and can enhance a company's brand image.
This differential highlights the importance of considering a property's energy performance when making leasing or purchasing decisions.
Source: lessentiel.lu
