Are you intending to settle down in Luxembourg? You should know that real estate prices are globally high, be it when buying or renting an accommodation, and keep increasing because of a shortage in housing.
It is true that buildings and houses construction sites can be seen everywhere in Luxembourg, still, the offer is currently not sufficient to meet the needs. Besides studies state a significant increase of the population in the next decades, what does not lead to predict a price drop, especially since economic growth is fine. The Statec estimates that there is a need for 5,600 to 7,500 additional dwellings per year.
Average announced sale prices per municipality
The advertised prices are the externalized selling prices in the real estate advertisements for the period from July 1, 2018 to June 30, 2019. These are not the prices actually recorded for sale.
Advertised prices apartments for sale
On average, the advertised prices for the sale of apartments in the Grand Duchy were €6,918/m² compared to €5,678/m² over the period from 1 July 2016 to 30 June 2017, meaning an increase of almost 22% over 2 years. It is now expected to cost about €601,698 compared to €485,242 previously to buy an apartment.
In Luxembourg City, the announced prices were on average 10,436 €/m² compared to 7,637 €/m² over the period from 1 July 2016 to 30 June 2017, an increase of almost 36% over 2 years. The differences are significant by district. The Limpertsberg district is at the top of the range with 12,217 €/m² announced against 8,056 €/m² for Beggen and 8,041 €/m² for Cents.
The average value of an apartment is announced at 838,014 euros in the municipality of Luxembourg. On average, it takes 715,560 euros to buy an apartment in Beggen compared to 1,136,829 euros in Belair.
In the surrounding municipalities, there are 7,831 €/m² in the municipality of Niederanven, 6,299 €/m² in the municipality of Sandweiler, 8,933 €/m² for the municipality of Hespérange, 7,467 €/m² in Walferdangee, 8,053 €/m² in Strassen and 7,739 €/m² in Bertrange.
The further away from the City of Luxembourg, the lower the price per m² is. It is necessary to count 5.437 €/m² in Esch-sur Alzette or 5.603 €/m² in Grevenmacher.
Advertised prices houses for sale
The value of houses per m² is very subjective insofar as the price of the property depends above all on the surface area of the land and its characteristics. Nevertheless, the following values can be used.
In the Grand Duchy of Luxembourg, a house is now advertised on average at a price of 924,696 euros on average (784,000 euros over the period 2016-2017), or 4,719 €/m².
In Luxembourg City, this price rises to an average of €1,610,113, or €7,914/m², compared with an average of €1,198,000, or €6,467/m² over the 2016-2017 period. According to available statistics, it takes on average 2,798,488 euros to buy a house (9,754 €/m²) in Belair.
In the municipality of Niederanven, an average of 1,772,462 euros will be spent on a house, 1,387,752 euros in the municipality of Walferdange, 1,184,254 euros in Sandweiler, 1,281,590 euros in the municipality of Hespérange, 1,397,212 euros in Bertrange and 1,431,485 euros in Strassen.
Again, the distance from capital is a factor of lower prices. It is necessary to count 700,223 euros for a house in Beaufort, 885,173 euros in Bettembourg or 908,598 euros in Remich.
Average announced rents per municipality
The rents announced per m² for the period from 1 July 2018 to 30 June 2019 amounted to €26.03 per m² compared with €19.91 per m² for the period July 2016-June 2017. It means an increase of 30% in 2 years. The price of rents depends above all on the type of apartment (new/old and number of rooms).
The average rent per m² is 22.14€/m² in Cents, 36.75€/m² in Bonnevoie. On average, it takes 2,437 euros to rent an apartment in Limpertsberg, 1,833 euros for an apartment in Belair, 1,541 euros in Gasperich.
The rents of the apartments in the surrounding municipalities are in the following averages: in the municipality of Sandweiler 1,427 euros, 1,674 euros in Walferdange, 1,669 euros in Hespérange and 1,622 euros in Strassen.
Here again, the distance from the City of Luxembourg is a significant factor in lowering prices. An apartment in Leudelange costs on average 1,463 euros per month, 1,280 euros in Styeinfort.
**Source Observatoire de l’Habitat, 2018/2019 period