For many years in the Grand-Duchy of Luxembourg, real estate prices have been rising. Through this article, experts from the real estate group Engel & Völkers offer you an analysis of rentals prices within the capital. How ranks Luxembourg-City compared to other financial centres in Europe? Are there major differences within the capital itself? What are the market trends for the coming years?
Luxembourg city is very competitive compared to other European capitals
According to a report published by the international ECA, Luxembourg is the 11th most expensive city in Europe in terms of property rents. Not surprisingly, London maintains the first place in the ranking, followed by Moscow and Zurich. The most expensive capital has an average rent of £3,693, or €4,177 per month for an apartment. Located in the heart of Europe, Luxembourg appears to be a very competitive city. Indeed, rentals remain affordable compared to other European financial centres. In 2017, the average rent was 1.444€ for an apartment.
Average rent per district in Luxembourg City
Kirchberg: average rent ≈ 1.936 €
Center: average rent ≈ 1.888 €
Limpertsberg: average rent ≈ 1.853 €
Belair: average rent ≈ 1.850 €
Merl: average rent ≈ 1.681 €
Hollerich: average rent ≈ 1.586 €
Gasperich: average rent ≈ 1.514 €
Cents: average rent ≈ € 1,497
Beggen: average rent ≈ 1.411 €
Cessange: average rent ≈ 1.379 €
Gare: average rent ≈ 1.260 €
(Source: l’Observatoire de l’Habitat, calculation period: July 1st 2016 - June 30th 2017)
Mid-term market trends for the rental market
In the coming years, the Grand Duchy of Luxembourg expects a population influx related to the growth of its economic and financial centre. First, newcomers tend to rent to familiarize themselves with the country. Therefore, the demand for properties is expected to increase considerably. Although many, the new projects will certainly not be enough to meet this growing demand. Rents will therefore tend to increase in the city but also in the other regions of the Grand-Duchy.