Do you intend to relocate to Luxembourg? It is critical to be aware of how expensive real estate is, whether it is being purchased or rented. The prices that are advertised today are on par with or even higher than those of major European cities. Due to a lack of available housing, these prices keep increasing.
There is a glaring shortage of supply compared to demand in the Luxembourg real estate market. Even though new neighborhoods have popped up recently (Cloche d’Or, Belval, etc.) and municipalities are working to release land for construction, the new buildings are not sufficient to entice buyers.
Although single-family homes and multi-family structures are still being built, there is still not enough supply to meet the surge in demand.
According to studies, the population will rise significantly in the ensuing decades. This does not imply that prices will decrease, especially given the continued strength of the economy. According to Statec, there is a yearly need for 5,600 to 7,500 more housing units.
Hike in real estate prices
The cost of real estate in Luxembourg has been steadily rising for some years. Here are the most recent trends in real estate.
Since two or three years ago, some experts have claimed that Luxembourg real estate is overpriced. The European Commission places a +28% cap on this overvaluation of real estate. While the median income increased by only 35% between 2010 and 2019, housing prices increased by 56% during that time.
Average advertised prices in Luxembourg (Sale price of the units)
However, it should be noted that the sale prices for apartments announced in the third quarter of 2021 have increased by +14% compared to the prior year, according to the notarized deeds recorded. In a year, prices for sales in future states of completion have gone up by +4%. However, it should be noted that the relative decline in new housing prices per m2 corresponds more to a change in new sales. These occur more frequently in less expensive areas than either the suburbs or the capital city of Luxembourg.
In the third quarter of 2021, the Grand Duchy’s announced prices for the sale of apartments were 7,805€/m2 on average.
In Luxembourg City, the average price per square meter advertised ranges from €7,600 to €14,300, compared to €7,637/sqm for the period from July 1, 2016, to June 30, 2017. The average price per square meter of the new construction is 12,206 euros. Even 17,000 euros are possible for some properties. With 16,125 euros per square meter, the Weimerskirch district tops the list, followed by the Kirchberg at 15,086 and the Limpertsberg at 14,196. The two districts where you can still negotiate apartment prices at less than 10,000 euros per m2 on average are Beggen and Hamm.
More prices
In the Luxembourg commune, the average price of an apartment is reported to be over 1.000.000 euros, though there are still differences. The required down payment for purchasing a property in the Dommeldange, Merl, Belair, Limpertsberg, Kirchberg, Cessange, Neudorf, and Upper Town districts is this sum.
According to the neighboring communes, the sale of a square foot costs 8.180 euros per square meter in Sandweiler, 8.999 euros per square meter in Hespérange, 9.005 euros per square meter in Walferdange, 10.068 euros per square meter in Strassen, and 10.492 euros per square meter in Bertrange.
The cost per square meter decreases with the distance from Luxembourg City. In Grevenmacher or Esch-sur-Alzette, you must add 6.950 euros per square meter.
Average advertised rents by municipalities
The average rent in Luxembourg City is 36.28 euros per square meter, with differences between the Cents and Kirchberg districts costing less than 30 euros per square meter, as well as Limpertsberg or Belair, or even Gasperich. In Kirchberg, Limpertsberg, or the Upper Town, an apartment will cost you on average more than 1,900 euros per month.
The average monthly rent for apartments in the nearby communes is as follows: 1.749 euros in Sandweiler, 1.474 euros in Walferdange, 1.654 euros in Hespérange, and 1.722 euros in Strassen
Again, prices decrease as you travel farther from Luxembourg. While an apartment in Steinfort costs about 1,491 euros per month to rent, it costs an average of 1,245 euros in Leudelange.
