Property estimates in Luxembourg: methods and the expert’s role
How to properly value a property in Luxembourg: professional methods, available data and 2026 valuation drivers.
By Erwan Bargain · Background and qualifications · LinkedIn
01Comparison, capitalisation and DCF
Direct comparison (Sales Comparison) is most used for residential: analysis of recent transactions on similar properties in the same area, adjusted for differences (area, floor, condition, orientation, parking, EPC). Reliable method when the market offers comparable references. In Luxembourg, LISER feeds this approach via hedonic models that isolate each characteristic's contribution to price.
Compare documented sales, capitalise income or discount cash flows. Select and justify methods and parameters for the property and assignment; results are scenarios to review with a professional.
02Available data sources
The LU market has high-quality public sources: Housing Observatory (observatoire.liser.lu) — transaction prices by municipality and type, rent index, monthly tracking; STATEC — IPIR (Residential Property Price Index), construction price index, demographics; data.public.lu — geoportal data, cadastre, PAG/PAP plans; AED land registry — notarial sale deeds (actual prices published quarterly).
For tertiary (offices, retail, hotels): quarterly reports from international firms JLL, CBRE, Cushman & Wakefield, Inowai (prime rents, vacancy rates, observed yields). For regulated rental valuation: the tevaxia legal rent calculator automates the 5% rule with STATEC coefficients. For hotels: STATEC overnight stays observatory, RevPAR by category.
03Key valuation drivers
The price/sqm spread between LU areas can be x4: Luxembourg City Centre (€15,000-20,000/sqm) vs rural cantons (€4,000-6,000/sqm). Within a municipality, sub-neighbourhoods differ (school proximity, transport, green areas, retail). Living area and layout matter (T2-T3 value better per sqm than T6+ for the rental market).
General condition and finish quality: a renovated property is valued 10-20% above an equivalent property to renovate. Energy performance has a growing impact: LISER studies put the value spread per EPC class at 3-8% (an F→C jump can boost value by 10-25%). Outdoor spaces (garden, terrace, balcony) and parking typically add 10-15% of value. Orientation, quietness and floor (with elevator) also play a role.
04The purpose of TEGoVA standards and LPVI’s role
The European Valuation Standards (EVS), published by TEGoVA, provide a framework for professional valuation: a defined assignment, reviewed sources, justified methods and explicit assumptions and limitations. This approach makes the analysis more transparent and documented; a formula alone is not an expert valuation.
In Luxembourg, the Luxembourg Property Valuation Institute (LPVI) is the professional association that is a member of TEGoVA and the national contact point for TEGoVA licences. Contact the association to learn about the process or ask for guidance towards an expert.
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Our tevaxia estimator applies a hedonic model calibrated on Housing Observatory and STATEC data. Enter municipality, area, condition, EPC and characteristics to get a price range with confidence level.
Run the estimateFrequently asked questions
Short answers to the most common questions on this topic.
What is the most reliable method for valuing a property in Luxembourg?
Compare documented sales, capitalise income or discount cash flows. Select and justify methods and parameters for the property and assignment; results are scenarios to review with a professional.
Does the EPC affect property prices in Luxembourg?
Yes. LISER studies put the value spread per EPC class at 3-8% (a class F to C jump can value 10-25% more). Impact will grow with European energy renovation obligations (EPBD revised 2024).
How much does a REV/TRV expertise cost in Luxembourg?
Request a quote suited to the property, required investigations and purpose of the report. Contact LPVI for guidance towards an expert. Tevaxia calculations help prepare that discussion and are not a quote for valuation services.
Where to find actual sale prices in Luxembourg?
The Land Registry (AED) publishes actual prices of notarial deeds quarterly. The LISER Housing Observatory aggregates and publishes these data by municipality and property type (observatoire.liser.lu).
What is the typical capitalisation rate in Luxembourg?
For residential: 3 to 5% gross by location (3-3.5% in prime LU City zones, 4-5% in cantons). For prime LU City offices: 4 to 5%. For hospitality: 6 to 8% by category and performance. These rates evolve with policy rates and bond yields.
Should VAT be considered in the estimate?
Specify whether amounts include VAT and transaction costs, according to the property and purpose of the analysis. The professional must explain these conventions in the report.
Official sources
Statutes, circulars and publications consulted for this guide.
- TEGOVA — European Valuation Standards 2025The European Group of Valuers' Associations · 2025
- Housing Observatory — prices by municipalityLISER
- Residential Property Price Index (IPIR)STATEC
- Land registry — sale deedsRegistration, Estates and VAT Administration
- Law of 4 December 1967 (LIR) — STATEC coefficient baseLegilux
- Hedonic studies on the LU property marketLISER
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