On 22 April 2026, Banque Internationale à Luxembourg (BIL) hosted a conference focused on the Luxembourg real estate market. Julien Licheron, Research Associate, Luxembourg Institute of Socio-Economic Research (LISER), Cédric Weisse, BIL Head of Retail Banking, and Lionel De Broux, BIL Chief Investment Officer, provided insights into the latest market trends and offered practical guidance on how to approach a real estate project in today’s environment.
A market stabilising after the correction
Julien Licheron presented the latest data on the market, highlighting its gradual return to balance. After the sharp adjustment observed between 2022 and 2024, transaction volumes for existing homes have moved back towards pre crisis levels, while activity in new developments remains more subdued.
On prices, he noted that the adjustment phase appears largely behind us. Over the last 12 months, the national housing price index increased by just +0.1%, pointing to overall stabilisation, with contrasting dynamics depending on property type and location.
Buying a home: focusing on the project
Against this backdrop, Cédric Weisse stressed that the decision to buy should primarily be based on the consistency of the personal project, rather than on attempts to time the market. Compared with previous years, buyers now benefit from more stable prices and renewed negotiating power, even if interest rates remain higher than in the past. For primary residence, long term affordability, professional stability and life plans should remain the decisive factors.
From an investment perspective, higher interest rates and regulated rents call for a selective and long term approach, favouring quality assets and portfolio diversification. Lionel De Broux underlined that interest rate uncertainty persists in the current geopolitical environment. Choosing the right financing structure, fixed rate, variable rate or a combination of both, remains essential to balance budget visibility and flexibility over time.
The best time to discuss your project is now
The conference underlined a clear message: there is no one size fits all answer to real estate decisions. A well structured, financially sound and coherent project remains the cornerstone of a successful property purchase or investment.
Do you have a project? Let’s get in touch to assess affordability, discuss financing options and the next steps to move your project forward with confidence.
To learn more about BIL’s housing financing solutions, visit 🔗www.bil.com/mortgage
