Real estate valuation ESTIMATE

Investing in Real Estate in Luxembourg

Investing in Real Estate in Luxembourg

Are you looking to invest in property? Seasoned or private investors, consider Luxembourg, this little country at the heart of Europe which is bursting with advantages for your rental investments!

In brief, the Grand Duchy of Luxembourg is:
  • A rich population diversity: 53% Luxembourgers, 47% foreigners of 150 different nationalities
  • A European capital
  • High demographic growth
  • A central country with excellent connections to European and global markets
  • Stable politics and governments
  • A secure, diverse economy, with the highest GDP per habitant in the OECD area
  • A favourable environment for companies and therefore for employment
  • High-quality infrastructures
  • A high quality of life
Property-linked advantages:
  • Very low property tax (between only 15 and 110 € per year!)
  • Fiscal advantages which enable savings
  • A higher property value growth than in neighbouring countries
  • A demand higher than offer for several years
  • Very few vacant homes especially in large towns
Property investment in Luxembourg can be carried out in new or old properties, in which prices are ultimately quite low due to demand.  But new builds are more attractive as they offer a ten-year guarantee and high energy performances. However, prices vary in large towns, and may even vary depending on the area. The highest demand is focused in Luxembourg-City and the surrounding communes. Then comes Esch-sur-Alzette, the second largest town of the country with in particular its Esch-Belval area which revitalised the economy and quality of life in the south of the country.

All the indicators are green for investors interested in the Grand Duchy of Luxembourg. Purchase prices, which are nevertheless very high, could be an obstacle, but seeing as demand has been higher than offer for several years, you will have a very good chance of renting out your property. To make a good rental investment, you will simply have to ensure that your potential monthly loan payments and charges are inferior to the monthly rent you will charge your future tenants.

To invest well and to ensure a good return, you must therefore carefully choose your location and area, the purchase price for your property loan and the rental price for your future tenants. Also, assess how much value your investment may acquire over time.