Real estate market and prices
Are you thinking of moving to Luxembourg? When it comes to housing, it's important to know that real estate prices are high, whether you're buying or renting.
In fact, real estate prices in Luxembourg are now higher than in major European cities. And despite an adjustment since 2023, the price drops are not enough to make housing affordable for all budgets. It must be said that the country is suffering from a housing shortage due to constant population growth.
Characteristics of the Luxembourg real estate market
Insufficient real estate supply relative to demand
The Luxembourg real estate market is clearly characterized by insufficient housing supply relative to demand.
On the ground, although there are still almost constant construction sites for apartment buildings or single-family homes, these projects are not sufficient to meet demand and curb price increases. Worse still, demand for property purchases and rentals remains unsatisfied despite the emergence and development of new neighborhoods(Cloche d'Or, the Kiem neighborhoods in Kirchberg, the expansion of the Belval neighborhood in Esch-sur-Alzette, etc.).
The supply of real estate remains insufficient to meet the influx of demand. And this growth in demand is not about to stop, as the resident population in Luxembourg continues to increase significantly. New workers continue to arrive, attracted by good career prospects and salaries .
Statec still reports a need for 5,600 to 7,500 additional homes 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 slowdown after price surge
It must be said that the Luxembourg real estate market experienced a surge in prices starting in 2019, while the European Commission estimated that real estate prices were overvalued by up to 28%. If we compare today's prices with those of 2010, we see a 56% increase in housing prices! Meanwhile, over the same period, median income rose by only 35%.
If we take real estate prices in 2005 as a base of 100, they have multiplied in 15 years by:
- 2.6 for house 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 that is considered overvalued and on the verge of overheating, the government and municipalities are taking measures to create more housing. However, these efforts are still proving insufficient despite a decline in prices since 2022. But this decline is still insufficient.
Average real estate prices
Housing sale prices in Luxembourg
Are you looking to buy an apartment or house in Luxembourg? Here we outline all the good reasons to buy your own home.
Advertised prices per square meter for homes
These sale prices are the prices advertised by real estate websites. They do not correspond to the prices actually paid by buyers after negotiations.
The prices advertised by agencies and on real estate portals increased by more than 10% each year in 2019, 2020, and 2021.
At the end of 2022, the market slowed down with "only +9.6%" growth over the year. In 2023, prices fell by 14.4% before finally rising by 1.4% in 2024, compared to the last quarter of 2023.
Prices recorded per square meter for housing
Here we present the prices recorded by notaries, i.e., the prices actually paid by buyers. There is always a lag of a few months between advertised prices and prices paid.
| Actual sale prices recorded by notaries | Sale price per square meter for new apartments and difference compared to the previous year | Sale price per square meter for new apartments and difference compared to the previous year |
| 2024 | 7,704 euros, -5% | €9,699, -4% |
| 2023 | €8,091, -7% | €10,119, +8% |
| 2022 | €8,734, +8% | €9,347, +5% |
| 2021 | €8,105, +16% | €8,902, +11% |
See the latest real estate trends here
Advertised sale prices by municipality
Advertised prices for apartments at the end of 2024
| Apartment sale prices in 2024 | Average advertised price | Advertised price per square meter |
| Luxembourg average | €821,464 | €9,713 |
| City of Luxembourg | €984,252 | €12,919 |
| Bertrange | €1,031,585 | €10,559 |
| Esch-sur-Alzette | 557,824 euros | €7,326 |
| Hesperange | €1,007,418 | €10,117 |
| Niederanven | €1,297,092 | 10,765 |
| Sandweiler | €813,686 | €8,783 |
| Strassen | €847,704 | 10,741 euros |
| Walferdange | €823,690 | €9,190 |
Advertised sale prices for houses at the end of 2024
| Sale prices for houses in 2024 | Average advertised price | Advertised price per m2 |
| Luxembourg average | €1,199,706 | 5,957 |
| City of Luxembourg | €1,912,758 | €8,670 |
| Bertrange | €1,724,462 | €8,250 |
| Esch-sur-Alzette | €885,776 | €5,164 |
| Hesperange | €1,611,660 | €7,464 |
| Niederanven | €1,892,983 | €8,063 |
| Sandweiler | €1,444,399 | 6,798 |
| Strassen | 1,883,078 euros | €9,029 |
| Walferdange | 1,872,310 euros | €8,322 |
The further away from Luxembourg City, the lower the price per square meter.
*Source: Observatoire de l'Habitat - Liser
More information on the housing assistance you may be eligible for.
Changes in advertised rents
| Actual sale prices recorded by notaries | Average advertised rents and difference compared to the previous year | Rents per square meter and difference compared to the previous year |
| 2024 | 1,747 euros, -3% | €37.31, +18% |
| 2023 | €1,797, +19% | €31.55, -8% |
| 2022 | €1,509, 0% | €34.15, +9% |
| 2021 | €1,510, +1% | €31.35, -2% |
Average advertised rents by municipality
Are you looking to rent a property? You can find our rental guide here.
Advertised rents in Luxembourg are generally on the rise.
| Apartment rents 2024 | Average advertised rent | Advertised rent per m2 |
| Luxembourg average | 1,747 euros | €37.31 |
| City of Luxembourg | €1,890 | €43.37 |
| Bertrange | €1,936 | €32.60 |
| Esch-sur-Alzette | €1,192 | €39.85 |
| Hesperange | €1,893 | €29.91 |
| Niederanven | €1,518 | €41.42 |
| Sandweiler | €2,240 | 31.32 euros |
| Strassen | 1,856 euros | 35.78 |
| Walferdange | 1,586 | €37.86 |
More information on 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 perspective from those who have chosen to live there, explore what expats think about their life in Luxembourg.
How to evaluate the price of housing in Luxembourg?
Are you looking to rent or buy a home in Luxembourg? How can you tell if the asking price is in line with the market or overvalued? First of all, here are a few points of reference.
Real estate prices and square footage
In Luxembourg, the price per square meter of a property is inversely proportional to its size. The smaller the property, the higher the price per square meter. An apartment of less than 50 square meters in Luxembourg is on average valued at 20-25% more per square meter than a 130-square-meter family apartment.
Small properties are currently in high demand among investors. Prices are often overvalued, especially for older properties. Owners set their prices based on the prices asked for new properties.
Condition of the property and work to be done in your new home
The condition of the property you are renting or buying is an important factor to consider in your assessment. But beware of hidden costs! Some repairs are obvious, while others are less visible at first glance. Be attentive when visiting different properties.
To assess the intrinsic quality of a property, the energy performance certificate is a good indicator of energy efficiency and the work that needs to be done, even if it is not visible. Depending on the property's CPE rating, you may need to carry out a certain amount of work to improve energy efficiency and save on heating costs.
Attractiveness of the city of Luxembourg and housing prices
The city of Luxembourg is highly attractive due to its economic dynamism. Workplaces are nearby (Kirchberg, Cloche d'Or), as are schools. See our article on where to live in Luxembourg City.
Esch-sur-Alzette is now the country's second largest economic hub. The Belval district is currently undergoing rapid development. The appeal of the south of the country is set to increase with the redevelopment of former industrial wasteland (see below) and transport development projects.
Outdoor spaces drive up prices
Since the Covid crisis and the ensuing lockdown, properties with outdoor space are now in high demand. Their prices have risen considerably compared to properties without a balcony or garden.
Expect to pay around 8% more for a balcony and 12% more for a garden. As a result, ground-floor apartments with gardens are now more sought after.
The surge in prices for garages and parking spaces in Luxembourg
Garages and indoor parking spaces weigh heavily on the budget for purchasing real estate in Luxembourg. Today,they can represent up to nearly 15% of the total transaction amount.
Given the difficulty of parking in the center of Luxembourg City, parking space prices continue to rise. Valued at an average of €42,000 across the country at the end of 2017, they can be valued at €90,000 in new buildings in Luxembourg. Some parking spaces are selling for more than €150,000!
With the evolution of the Luxembourg real estate market, those considering moving there may be interested in the challenges and opportunities presented by housing.
New neighborhoods coming to Luxembourg
Luxembourg continues to develop its real estate sector. The challenge for Luxembourg's policymakers today is to reclaim as much land as possible in order to meet the country's housing needs.
Local authorities are encouraging construction on vacant lots. They are gradually transforming green areas into building zones. Taxation on vacant land and empty housing is likely to increase significantly from 2023 onwards. The aim is to encourage the sale or rental of empty housing.
The redevelopment of brownfield sites is also underway in order to create new neighborhoods.
Real estate developments in Luxembourg and the Central Region
Real estate projects in the Kirchberg district
The Kirchberg district represents significant development potential for the City of Luxembourg. However, most of the land is privately owned, and the owners are not always willing to sell.
Nevertheless, the Kirchberg district is developing rapidly 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 people, with nearly 5,000 additional homes. The Laangfur and Kuebebierg districts, the last remaining land reserves to be developed, are part of the capital's major development projects.
Strong development potential in the Cessange neighborhood
The Cessange neighborhood is also undergoing rapid real estate development. Located near the busy Cloche d'Or industrial zone, this neighborhood benefits from numerous Private Development Plans, particularly around Cessange Park. The Guddebierg, Im Grundchen, and Rue Verte housing developments are expected to contribute to a significant increase in the population of this neighborhood.
Rollingergrund and Belair districts undergoing transformation
The Rollingergrund neighborhood is undergoing transformation. A new "Faïencerie" project is being studied along Rue de Rollingergrund. This project envisions a mixed-use area with a focus on urban living. Shops, childcare services, banks, restaurants, and leisure facilities will be built around a central square. The Château de Septfontaines will be fully integrated into this new project. Pedestrian and cycle paths will be part of the soft mobility policy promoted by the city of Luxembourg.
The "Place de l'Etoile" at the intersection between the Belair and Rollingergrund districts is also the subject of a major development project. This square is set to become a real hub for exchanges between Luxembourg and neighboring municipalities such as Strassen. A new tram line will connect Luxembourg to Strassen. Six hundred homes and new shops will also be built around a pedestrian-only area. The Route d'Arlon is set to be diverted through a tunnel, with the creation of an underground public transport station. This project is part of the Mobility Plan 2035.
Development of the town of Sandweiler
Sandweiler, east of Luxembourg City, is set to see the construction of 20 new buildings. Located in the immediate vicinity of the capital and Luxembourg Airport, the town of Sandweiler is a land reserve surrounded by nature. The project involves the construction of 110 additional homes, office space, and shops.
Real estate developments in southern Luxembourg
Creation of new neighborhoods in Esch-sur-Alzette
The city of Esch-sur-Alzette is also continuing its transformation with the creation of two new neighborhoods. Once a neglected industrial city, Esch-sur-Alzette is now experiencing a resurgence in popularity due to lower prices and, above all, a healthy economy thanks to the Belval business district.
Metzeschmelz will redevelop the industrial wasteland between Esch and Schifflange with 10,000 additional homes planned for 2028.
Revitalization of the Belval area
The Belval district continues to develop in the Square Mile district. The two Capelli Towers will have 15 floors of housing and stand 50 meters tall. As for the Route Lens brownfield site in Esch, it is focusing on the environment across its 10.5 hectares. Between 3,000 and 3,500 homes are expected to be built by 2026.
Ultimately, Belval is expected to have nearly 7,000 inhabitants, compared to less than 400 in 2022.
Restructuring of the Schifflange area
After the Belval district in the municipality of Esch-sur-Alzette, the Schifflange sector, a former steelworks site, will be completely restructured.
Arcelor Mittal plans to convert 61 hectares of brownfield sites into housing (10,000 homes, 30% of which will be affordable), schools, and a high school. The circular economy and social diversity will be prioritized, as will soft mobility.
New neighborhood in the city of Dudelange
The city of Dudelange is also set to launch the construction of a new neighborhood. Neischmelz will have nearly 1,000 homes, 50,000 m² of retail space, and 17,000 m² of green space.
A new village in the municipality of Kehlen
The municipality of Kehlen is investing in a new village, Elmen. This ambitious eco-friendly project will eventually have 2,000 inhabitants in a mixed environment, covering a total area of 27 hectares.
Real estate projects in northern Luxembourg
The town of Wiltz is also planning to develop its industrial wasteland. The "Wunne mat der Wooltz" project will see more than 25 hectares converted into housing, workspaces, and shops by 2030. Leisure and relaxation areas will allow the 1,800 inhabitants of the new site to enjoy a new quality of life. Here again, the circular economy is a priority.
This article also provides an overview of the latest real estate trends in Luxembourg.
The real estate market in Luxembourg is constantly evolving, and for those who need fast and reliable transportation, using services such as on-demand chauffeur services can be very convenient for exploring different neighborhoods.
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