Housing in Luxembourg is rapidly losing square metres

Luxembourgers who dream of owning their own home are increasingly forced to reduce their expectations along with their living space. According to a recent report by the State Statistics Institute STATEC, the average size of new flats in the country has shrunk to a historic low of 71 m² in the first half of 2025, compared to around 82 m² in the previous ten years.

Government statistics directly links this trend to the sharp rise in mortgage rates. The increase in the cost of loans has significantly affected the solvency of the population. As a result, families are increasingly forced to buy more modest housing to fit into new, less generous budgets. The STATEC survey emphasises: "The fall in housing volumes is a direct reflection of pressure from the mortgage market."

And we're not just talking about flats. The size of new homes is also shrinking: until mid-2022 they averaged around 250 m², but since then the average size has fallen below 220 m². Given that houses in Luxembourg are traditionally seen as a long-term investment, this reduction is particularly symbolic: even in the premium segment, the market is shrinking.

The current situation reflects a profound change in the affordability of housing in the country, where the simultaneous rise in construction costs, credit rates and inflation is actually reshaping the very idea of "owning a home". What was recently considered a basic standard is now becoming less and less achievable.