Real Estate Blog

State of rental markets, sales and real estate constructions in Luxembourg

June 22, 2017

STATEC and the Observatoire de l’Habitat have just published their new bi-annual report on real estate prices in Luxembourg.


Real estate sales

They noted a 7.7% increase in housing prices between the 4th quarter of 2015 and 2016. It was a rather rapid growth than what was usually recorded.

The number of transactions grew by 1%. There was a 6% increase in the purchase of existing apartments compared to a 6.3% decrease in apartments under construction.

With regard to the selling prices of houses, they differ according to their state whether they are old or new. Thus, there is an average difference of 26% of the price per square meter between an existing apartment and an apartment under construction, the latter being the most expensive. In general, whether it is a new or an old apartment, the larger the apartment, the lower the price per square meter is.

Housing price is logically influenced by their surfaces, and also by their location. The closer they are to the capital, the higher the price is. Therefore, buyers of an apartment that is under construction will have to pay on average € 7,546/m² in the City of Luxembourg, € 5,399/m² in the East, € 5,253/m² closer to Capellen-Mersch, € 4,934/m² closer to Esch-sur-Alzette and € 4,663/m² in the north of the country.

In 2016, all that was for an average price € 6,051/m² for an apartment under construction and € 4,795/m² for an existing apartment.

The same trend is observed for the price of houses, more or less closer to the capital, with the exception of the canton of Capellen-Mersch, which is more expensive than the east of the country. The average purchasing price of a house near the city is € 904,855, € 693,754 in the Capellen-Mersch area, € 598,521 in the East, € 516,489 in Esch-sur-Alzette and € 453,720 in the North, which is almost half the price than the City.

Therefore it refers to an average price of € 623,315 if purchasing a house in the Grand Duchy.


The rental market

In the 4th quarter of 2016, the average rent of an apartment amounted to € 977 excluding charges in Luxembourg. Depending on the geographical area, prices greatly change, with an average rent closer to Luxembourg-City being € 1,145 compared to € 760 in the North.

The canton of Esch-sur-Alzette has the smallest apartments that are rented: 69.9m² compared to the average 77.8m² in the Grand Duchy. However, STATEC and the Observatoire de l’Habitat have also noted an increase in the housing surface area: apartments built before 1960 were on average 73m², compared to the 78m² until 2000 and 82m² after 2000. It can therefore be assumed that the rental stock in the canton of Esch-sur-Alzette is the most aging.

To rent a house, on average it is required to have € 1,441 per month as the rent for a living space of 166m².


The construction market

It is mainly dense in the immediate suburbs and in the City of Luxembourg, followed by the southern side of Esch-sur-Alzette. It is ultimately the same pattern with regard to the purchase of existing homes, concentrated on the same areas.

In 2016, there has been an increase in the apartments under construction in the canton of Luxembourg compared to the previous years.

As for the construction of houses, it is much less dense in the major urban centers. This is quite logical given the land price and the lack of space closer to the cities.

In order to find out all the figures, graphs and summary tables of this study, please visit the Observatoire de l’Habitat site.


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Apartments for sale in Luxembourg: prices per m² without amenities
New figures from the Observatoire de l’Habitat - 4th quarter 2016
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