House Extension Costs in Luxembourg: What to Know in 2025

Publié le 1/26/2025

House Extension Costs in Luxembourg: What to Know in 2025
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Building a house extension is an ideal solution to gain more space and comfort without moving. However, such a project requires careful planning and a significant budget. Here’s everything you need to know about the costs and steps involved in building a house extension in Luxembourg in 2025.


1. Why Build a House Extension?

House extensions offer several advantages:

  • Increased space: Perfect for expanding a room, creating a home office, or adding a bedroom.
  • Property value boost: A well-designed extension increases the value of your home.
  • Adaptability: Meet evolving family or professional needs.
  • Long-term savings: A well-insulated extension can reduce energy bills.

2. Types of Extensions and Their Average Costs

Costs vary depending on the type of extension, materials, and complexity of the work. Here’s an overview of the main options:

Horizontal Extension

  • Description: Building on one side of the house, often to expand an existing room.
  • Average cost: Between €2,000 and €3,500/m²

Vertical Extension

  • Description: Adding an additional floor to your existing home.
  • Average cost: Between €2,500 and €4,000/m², due to the necessary structural work.

Conservatory or Glass Extension

  • Description: A bright solution with mostly glass walls.
  • Average cost: Between €1,500 and €3,000/m²

Wooden Extension

  • Description: An eco-friendly and quick-to-install option.
  • Average cost: Between €1,800 and €3,200/m²

3. Factors That Influence Extension Costs

a) Extension Size

  • Larger extensions increase overall costs, but the price per square meter may decrease slightly for larger areas.

b) Materials Used

  • Standard: Concrete, bricks.
  • Premium: High-quality wood, aluminum, or insulated glass.

c) Complexity of the Work

  • Projects requiring major structural changes, such as vertical extensions, are more expensive.

d) Regulations and Permits

  • Adhering to local regulations and obtaining permits can add administrative fees and extend timelines.

4. Key Steps to Succeed in Your Extension Project

a) Planning

  • Assess your needs and establish a realistic budget.
  • Consult an architect to design a project that complies with local regulations.

b) Building Permit

  • In Luxembourg, an extension usually requires a building permit, which you can obtain from your local municipality.

c) Choosing Professionals

  • Hire qualified contractors and request multiple quotes to compare prices and services.

d) Project Supervision

  • Monitor progress closely to stay on schedule and within budget.

5. Subsidies and Financial Aid Available

In 2025, certain financial aid programs can reduce the cost of your extension, especially if it includes energy-efficient improvements:

  • PRIMe House: For extensions using eco-friendly materials or energy-efficient systems.
  • Reduced VAT at 3%: Applicable to work on buildings over 10 years old.
  • Municipal Grants: Some municipalities offer subsidies to encourage sustainable expansion projects.

6. Tips to Optimize Your Budget

Invest in Insulation

Good thermal and acoustic insulation reduces energy costs in the long term.

Choose Durable Materials

High-quality materials require less maintenance and increase the value of your extension.

Plan Ahead

Anticipate unexpected costs by including a 10–15% margin in your budget.


7. Mistakes to Avoid

Ignoring Local Regulations

Ensure your project complies with urban planning rules to avoid fines or delays.

Underestimating Timelines

Extensions often take several months to complete, including preparation and permit approvals.

Choosing the Cheapest Option

Very low quotes may hide poor-quality materials or lack of expertise from contractors.


Conclusion

Building a house extension in Luxembourg is a strategic investment to gain space and increase your property’s value. With average costs ranging between €1,500 and €4,000/m², careful planning and hiring competent professionals are essential to ensure your project’s success.

By taking advantage of available subsidies and prioritizing durable materials, you can optimize your budget while creating an extension that is both aesthetic and environmentally friendly.


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