Are you thinking of moving to Luxembourg? If you're looking for a place to live, you'll need to be aware that property prices here are high, whether for sale or rent.
Today, property prices in Luxembourg are higher than in other major European cities. And despite a readjustment since 2023, price reductions are not sufficient to allow access to housing for all budgets. It has to be said that the country is suffering from a housing shortage in the face of a steadily growing population.
Characteristics of the Luxembourg real estate market
Real estate supply insufficient to meet demand
The Luxembourg real estate market is clearly characterized by a shortage of housing supply in relation to demand.
On the ground, although there are still almost constant construction sites for apartment blocks and single-family homes, they are not sufficient to meet demand and curb price rises. Worse still, demand for property to buy or rent is still not being met, despite the emergence and development of new districts(Cloche d'Or, the Kiem districts in Kirchberg, the expansion of the Belval district in Esch-sur-Alzette, etc.).
Real estate supply remains insufficient to meet the influx of demand. And there's no end in sight to the growth in demand, as Luxembourg's resident population continues to rise significantly . New workers continue to arrive, attracted by attractive career prospects and salaries,
Statec continues to forecast a need for between 5,600 and 7,500 additional housing units per year. However, the real estate market has been at a standstill since the end of 2022, and many developers have had to close their doors.
Market slows after price surge
It has to be said that the Luxembourg real estate market has seen a surge in prices since 2019, when the European Commission estimated that property prices were overvalued by up to +28%. If we compare today's prices with those of 2010, we see an increase in housing prices of +56%! While over the same period, median income increased by only +35%.
If we take 2005 property prices as a base 100, they have multiplied in 15 years by :
- 2.6 for home sales, all municipalities and all properties combined
- 3.0 for apartment sales
- 1.6 for house rentals
- 1.7 for apartment rentals.
See the cost of housing in household budgets.
Faced with a market deemed overvalued and on the verge of overheating, the government and local authorities are taking steps to create more housing. But these efforts are still proving insufficient, despite a fall in prices since 2022. But this is still not enough.
Average real estate prices
Housing prices in Luxembourg
Would you like to buy an apartment or house in Luxembourg? Here are all the good reasons to buy your home.
Advertised prices per m2 for housing
These sales prices are intended as asking prices on real estate websites. They do not correspond to the prices actually paid by buyers after negotiations.
Prices posted by real estate agencies and on property portals have risen by more than 10% each year in 2019, 2020 and 2021.
The end of 2022 saw a slowdown in the market, with "only +9.6%" growth for the year. In 2023, prices fell by 14.4%, before finally rising by 1.4% in 2024, compared with the last quarter of 2023.
Registered prices per m2 for housing
Here we present the prices recorded by notaries, i.e. those actually paid by buyers. There is always a time lag of a few months between prices announced and prices paid.
| Actual sales prices, recorded by notaries | Sales price per m2 of apartments built and year-on-year change | Sales price per m2 new apartments and year-on-year change |
| 2024 | 7,704 euros, -5 | 9,699 euros, -4% |
| 2023 | 8,091 euros, -7 | 10,119 euros, +8 |
| 2022 | 8,734 euros, +8 | 9,347 euros, +5 |
| 2021 | 8,105 euros, +16% sales | 8,902 euros, +11 |
See the latest real estate trends here
Advertised sales prices by commune
Announced apartment prices to end 2024
| Apartment sales prices 2024 | Average advertised price | Advertised price per m2 |
| Average Luxembourg | 821,464 euros | 9,713 euros |
| Luxembourg City | 984,252 euros | 12,919 euros |
| Bertrange | 1,031,585 euros | 10,559 euros |
| Esch-sur-Alzette | 557,824 euros | 7,326 euros |
| Hespérange | 1,007,418 euros | 10,117 euros |
| Niederanven | 1,297,092 euros | 10,765 euros |
| Sandweiler | 813,686 euros | 8,783 euros |
| Strassen | 847,704 euros | 10,741 euros |
| Walferdange. | 823,690 euros | 9,190 euros |
Advertised selling prices of homes to end 2024
| House sale prices 2024 | Average advertised price | Advertised price per m2 |
| Average Luxembourg | 1,199,706 euros | 5,957 euros |
| Luxembourg City | 1,912,758 euros | 8,670 euros |
| Bertrange | 1,724,462 euros | 8,250 euros |
| Esch-sur-Alzette | 885,776 euros | 5,164 euros |
| Hespérange | 1,611,660 euros | 7,464 euros |
| Niederanven | 1,892,983 euros | 8,063 euros |
| Sandweiler | 1,444,399 euros | 6,798 euros |
| Strassen | 1,883,078 euros | 9,029 euros |
| Walferdange | 1,872,310 euros | 8,322 euros |
The further away you are from Luxembourg City, the lower the price per m².
*Source: Observatoire de l'Habitat - Liser
Find out more about the housing subsidies available to you.
Trend in advertised rents
| Actual sales prices, recorded by notaries | Average advertised rents and year-on-year variance | Rents per m2 and year-on-year variance |
| 2024 | 1,747 euros, -3 | 37.31 euros, +18 |
| 2023 | 1,797 euros, +19 | 31.55 euros, -8 |
| 2022 | 1,509 euros, 0% discount | 34.15 euros, +9 |
| 2021 | 1,510 euros, +1 | 31.35 euros, -2 |
Average advertised rents by commune
Want to rent a property? You'll find our rental guide here.
Advertised rents in Luxembourg are generally on the rise.
| Apartment rents 2024 | Average advertised rent | Advertised rent per m2 |
| Average Luxembourg | 1,747 euros | 37.31 euros |
| Luxembourg City | 1,890 euros | 43.37 euros |
| Bertrange | 1,936 euros | 32.60 euros |
| Esch-sur-Alzette | 1,192 euros | 39.85 euros |
| Hespérange | 1,893 euros | 29.91 euros |
| Niederanven | 1,518 euros | 41.42 euros |
| Sandweiler | 2,240 euros | 31.32 euros |
| Strassen | 1,856 euros | 35.78 euros |
| Walferdange. | 1,586 euros | 37.86 euros |
Find out more about rent subsidies and how to reduce your rental budget.
The real estate market in Luxembourg reflects not only a dynamic economy, but also unique opportunities for residents. For a more detailed, real-life perspective from those who have chosen to live here, explore what expats think about living in Luxembourg.
How do you calculate the price of a home in Luxembourg?
You're looking to rent or buy a property in Luxembourg. How do you know whether the price offered is in line with the market or overvalued? First of all, here are a few points of reference.
Property prices and surface area (m²)
In Luxembourg, the price per m² of a property is inversely proportional to its surface area. The smaller the property, the higher the price per m². An apartment of less than 50 m² in Luxembourg is on average valued at between 20 and 25% more per m² than a 130 m² family apartment.
Today, small surface areas are very much in demand among investors. Prices are often overvalued, especially for older properties. Landlords are setting their prices in line with those of new-build properties.
Condition of the property and work to be carried out in your new home
The condition of the rental or purchase property is a point to be taken into account in the valuation. But beware of hidden costs! Some work is obvious to carry out, while others are less visible at first glance. Be sure to pay close attention when visiting different properties.
To assess the intrinsic quality of a property, the energy passport is a good indicator of energy efficiency and the work that needs to be done, even if it's not visible. Depending on the property's CPE rating, you'll be required to carry out a certain amount of work to improve energy efficiency and save on heating costs.
Attractiveness of Luxembourg City and housing prices
Luxembourg City is a very attractive place to live, thanks to its dynamic economy. Workplaces are close by (Kirchberg, Cloche d'Or), as are schools. See our article on where to live in Luxembourg City.
Today, Esch-sur-Alzette is the country's 2nd economic hub. The Belval district is currently in full development. The attractiveness of the south of the country is set to increase with the reclamation of former industrial wastelands (see below) and transport development projects.
Outdoor spaces drive up prices
Since the Covid crisis and the confinement that followed, housing with an exterior is now highly sought-after. Their price has risen considerably compared with homes without a balcony or garden.
Expect to pay around 8% more for a balcony, 12% more for a garden. In fact, garden-floor apartments are more sought-after today.
Soaring garage and parking prices in Luxembourg
Garages and indoor parking spaces weigh heavily in the acquisition budget of a property in Luxembourg. Today, they can account for up to 15% of the total transaction.
Given the difficulty of parking in the center of Luxembourg City, parking prices continue to rise. Valued at an average of 42,000 euros at the end of 2017, they can be as high as 90,000 euros in Luxembourg's new buildings. Some parking spaces are selling for more than 150,000 euros!
With the evolution of the Luxembourg real estate market, those considering relocating there may be interested in the challenges and opportunities of housing.
New districts coming to Luxembourg
Luxembourg continues its real estate development. The challenge for Luxembourg politicians today is to reclaim as much land as possible to achieve the number of housing units the country needs.
Municipalities are encouraging construction in "empty spaces". They are gradually transforming green areas into building zones. The tax burden on undeveloped land and empty homes is set to rise considerably from 2023 onwards. The aim is to encourage the sale or rental of empty properties.
Industrial wasteland is also being redeveloped to create new neighborhoods.
Real estate developments in Luxembourg and the Centre region
Building projects in the Kirchberg district
The Kirchberg district represents strong development potential for the City of Luxembourg. However, most of the land is privately owned, and not always ready to sell.
Nevertheless, the Kirchberg district is developing at high speed to the north, with the new Op der Schled site . By 2030, this will increase the number of inhabitants in this district by more than 10,000, in almost 5,000 additional housing units. The Laangfur and Kuebebierg districts, the last remaining land reserves to be developed, are among the capital's major development projects.
Strong development potential in the Cessange district
The Cessange district is also undergoing significant real estate development. Located close to the Cloche d'Or industrial zone, this district benefits from a number of development plans for private individuals, notably around the Parc de Cessange. The Guddebierg, Im Grundchen and Rue Verte housing developments are expected to significantly increase the district's population.
Rollingergrund and Belair neighborhoods undergoing transformation
The Rollingergrund district is undergoing a transformation. A new "Faïencerie" project is being studied along Rue de Rollingergrund. The project is designed to create a mixed-use, urban living environment. Shops, crèches, banks, restaurants and leisure facilities will be built around a central square. The Château de Septfontaines will be fully integrated into the new project. Pedestrian and cycle paths will be part of the soft mobility approach advocated by the City of Luxembourg.
The "Place de l'Etoile" at the intersection of the Belair and Rollingergrund districts is also the subject of a major development project. The square is to become a hub between Luxembourg and neighboring communities such as Strassen. A new tramway line will link Luxembourg to Strassen. 600 housing units and new shops will also be built around a pedestrian area. The Route d'Arlon is to be diverted by a tunnel, with the creation of an underground public transport station. This project is part of the Mobility Plan 2035.
Development of Sandweiler
Sandweiler, to the east of Luxembourg City, is set to see the construction of 20 new buildings. Situated in the immediate vicinity of the capital and Luxembourg airport, the town of Sandweiler is a natural land reserve. The project calls for the construction of 110 additional housing units, office space and retail outlets.
Real estate developments in southern Luxembourg
Creating new districts in Esch-sur-Alzette
The town of Esch-sur-Alzette is also continuing its transformation with the creation of 2 new districts . Once a neglected industrial town, Esch-sur-Alzette is enjoying a new lease of life thanks to lower prices and, above all, a healthy economy with the Belval cluster.
Metzeschmelz will make the most of the industrial wasteland between Esch and Schifflange, with 10,000 additional homes planned for 2028.
Enhancing the Belval sector
The Belval district continues its development on the Square Mile. The two Capelli Towers will feature 15 storeys of housing at a height of 50 metres. As for the Route Lens wasteland in Esch, the 10.5-hectare site is focused on the environment. Between 3,000 and 3,500 housing units are expected to be built by 2026.
Eventually, Belval will have a population of almost 7,000, compared with less than 400 in 2022.
Restructuring the Schifflange sector
After the Belval district in Esch-sur-Alzette, the Schifflange area, a former steelworks site, will be completely restructured.
Arcelor Mittal plans to convert 61 hectares of industrial wasteland into housing (10,000 units, of which 30% affordable), schools and a high school, etc. The circular economy and social mix will be promoted, as will soft mobility.
New district in the city of Dudelange
The town of Dudelange will also be launching the construction of a new district. Neischmelz will feature around 1,000 homes, 50,000 m2 of retail space and 17,000 m2 of green space.
A new village in the community of Kehlen
The community of Kehlen is investing in a new village, Elmen. This ambitious eco-responsible project will eventually be home to 2,000 inhabitants in a mixed environment, on a total surface area of 27 hectares.
Real estate projects in northern Luxembourg
The town of Wiltz is also planning to redevelop its brownfield sites. By 2030, the "Wunne mat der Wooltz" project will see over 25 hectares converted into housing, workspaces and shops. Leisure and recreation areas will enable the 1,800 inhabitants of the new site to enjoy a new quality of life. Once again, the focus is on the circular economy.
In this article, you'll also find a history of the latest real estate trends in Luxembourg.
The real estate market in Luxembourg is constantly evolving, and for those who need fast, reliable transportation, using services like On-Demand Chauffeur Services can come in very handy for exploring different neighborhoods.
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