After two years marked by a sharp drop in building permits, Luxembourg’s new construction sector seems torn between stagnation and a potential rebound.
- A historic decline in approved projects Between 2022 and 2024, the number of authorized housing units fell by more than 35%, according to STATEC. Key reasons include rising construction costs, high interest rates, and general economic uncertainty.
- Projects on hold Many developers have frozen their projects, waiting for more favorable conditions. Some serviced plots remain vacant, while other developments are being downsized or split into multiple phases.
- A rebound in 2025? Q1 2025 has shown a modest increase in permit requests, especially in high-demand areas. The Luxembourg government has also announced new incentives for sustainable construction, which could stimulate project restarts.
- Opportunities for off-plan buyers With longer delivery timelines and reduced competition, off-plan (VEFA) buyers may currently benefit from better negotiating power, particularly on the remaining units in ongoing developments.
Conclusion New construction remains cautious, but signs of recovery are emerging. At Alfa Immo, we closely monitor these trends to guide our clients at the right moment. Contact us to learn more about ongoing or upcoming developments.
