atHome.lu brings you twice a year a visibility on the statistics of the posted prices of properties for sale and for rent in Luxembourg. A unique guide that allows you to stay informed about the trends of the real estate market in the Grand Duchy.

Focus on our analysis of the current market figures 

Real estate prices and market supply vary from region to region. atHome helps you to choose the most suitable region with its real estate analysis.

The Centrethe most sought-after region of the Grand Duchy

Very popular with residents looking to rent or buy, the Centre remains the most expensive region in Luxembourg. To become a tenant in autumn 2021, you will need an estimated budget of €1,779 for a flat, while you will need €3,653 for a house. Rent prices are on average 11.2% higher for houses in the Centre region than in the rest of the country.

For future homeowners, the average budget for buying a flat is now €849,107 and €1,523,363 for buying a house. In one year, prices have risen by 3.4% for both houses and flats. Despite prices being 20% and 37% higher than the national average, the Centre region remains the most sought-after in the Grand Duchy.

As an attractive region, the South has a wide range of real estate on offer

With respectively 33% of flats and 32% of houses for sale in the Grand Duchy, the South region is close behind the Centre in terms of the number of ads. This attractiveness is explained by lower prices than those found in the centre of the country, and by communes that appeal to residents: Differdange, Petange and Esch-sur-Alzette. If you want to rent a flat in the South region, you will need an average budget of €1,332, while you will need €2,742 for a house. On average, rents are respectively 18.6% and 25.9% cheaper than in the rest of the country.

To become a homeowner in the south of Luxembourg, you will need an estimated budget of €575,499 for a flat, and €911,590 for a house, respectively €19% and €18% less expensive than the observed national average.

This is reflected in the prices, In the East seduced

With an increase of 13.6% over the last 12 months (18.7% for flats and 8.6% for houses), flats and houses in the East region are on the up. Previously a cheap region, you will now need €1,084,859 to buy a house, just 2% less than the national average. To own a flat, on the other hand, the average budget required is estimated at €642,733, or 10% less than the rest of the country.

As far as renting is concerned, expect to pay 1321€ for a flat and 2618€ on average for a house in October 2021. With average prices 17.4% cheaper than the national average for flat rentals and 29.2% cheaper than the national average for house rentals, renting in the East region remains affordable.

L'WestThe second most expensive region in the country

Flats in the West region are now extremely popular: with only 11% of the country's flats for sale located in this region, offers are scarce. With an increase of 4.5% in twelve months, owning a flat in this region will now cost you 4% more than the national average, with an estimated budget of €739,760. For houses, the average price to buy is €1,167,854, which is 5% higher than the national average.
The same trend can be seen for rentals, with prices at €1,467 for a flat, and €2,684 for a house, respectively 8.1% and 12.6% cheaper than the national average, making the West region the second most expensive region in the country after the Centre region.

What about the Luxembourg City ?

With an average price of €10,869 per square metre, Luxembourg City is unsurprisingly the city with the highest prices in the country. Prices per square metre vary from one district to another, with some differing by up to €4,000.

Renting, buying new or old, what should you choose? atHome takes a look at each type of transaction to help you decide which project is best suited to your needs and your budget.

Renting: a slowdown in the evolution of prices confirmed.

In autumn 2021, average rents nationwide for all floor areas are €1,600 for flats and €3,070 for houses.

It is a trend that seems to be confirmed, the rise in rents continues to weaken over the last 12 months. Indeed, as last spring, we see stagnant rents for flats and we observe a slight increase of 1.7% for houses.

These increases are less than the average increases observed in previous periods.

The rent freeze decided more than a year ago could be an explanation to better understand this slowdown. Today, it can be seen that sale prices compared to rents have favoured acquisition rather than rental and rental yields are less attractive as sale prices are increasing faster than rents.

These developments need to be monitored to confirm this hypothesis. In terms of supply on the rental market, flats type 1 and 2 bedrooms are the most numerous in Luxembourg. They represent almost 80% of the ads. Small studio flats and large flats are rather rare.

On the sales side, not surprisingly, prices continue to rise

Today, to acquire a property in the Grand Duchy, the average budget for a house is €1,171,104 and €747,768 for a flat (average prices posted, all surfaces included).

Significant increases over the last 12 months can be seen in Luxembourg with increases of 8% and 6% respectively.

It is again observed that the sanitary crisis and the confinement have not had any impact on the surge in prices. On the other hand, buyers seem to have revised their plans and are turning more towards the regions far from the centre of the Grand Duchy. This has resulted in a slowdown in growth in the latter, while in the West and North regions prices have risen by almost 20% over the last 6 months. Prices per square metre have been rising at the same rate, reaching €8,414/m² for flats in Luxembourg.

Unsurprisingly, in the capital you have to count on more than this national average, as Luxembourg City has an average price of 10,332 €/m² for this autumn 2021.

Finally, it can be noted that the South of the country is more sought after by future buyers. As prices are much more affordable than in the Centre, buyers may still be looking for areas that are more conducive to new post-Covid lifestyles with flexibility in teleworking.

Want to sell? atHome.lu helps you to the sale of your property project.

New for your real estate project? In any case, it is very popular!

In Luxembourg, new buildings is still very successful with a high demand from future owners, despite a slowdown in supply.
Indeed, the health crisis has had an impact, not on prices, but on the volume of ads on the market. It can be seen that the number of new advertisements on the market has decreased by 20.3% over one year. This decrease can be explained by the shortage of materials on the building sites, which naturally led to a delay in the delivery of projects.

A slowdown in construction does not slow down prices. Indeed, the appeal of new property remains intact and this has led to an increase of 11.7% in average prices over the last 12 months. The average price of a new flat in France is now 889,812€.

Unsurprisingly, prices per square metre for a flat are equally high in the country: on average €9,571/m².
However, it should be noted that 45% of the flats are located in the centre of the country, which tends to pull the average price upwards.

Finally, even if the prices of new buildings are much higher than those of old buildings, investing in new buildings remains a safe bet in Luxembourg.

Indeed, the market is very dynamic and there are no signs of a downturn in the coming year.

Also in our autumn edition:

▷ The focus on the municipalities of Steinsel, Wiltz, Mondercange, Schengen, Rambrouch and the Gasperich district.

▷ Our feature on insurance & property and our guide to what to think about when buying property.

atHome Magazine is distributed free of charge at the entrance of our offices located at 25 route d'Esch in Luxembourg City.

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