The price to pay to move to the Grand Duchy
The real estate market is rather tense. With demand exceeding the available supply, prices have been driven up. The “Observatoire de l’habitat” indicates an average increase of 14.5% of the sales prices just for the year 2020. And this tendency can be observed since almost 3 years.
The same is true of the rental market, where the price per square meter has increased by more than 17% in Luxembourg city between 2019 and 2020. And according to the “Observatoire de l’Habitat”, the average rent was 32 euros per square meter nationally and 37.5 euros for Luxembourg city.
Delphine, 30, works in the banking sector. When she arrived in Luxembourg, she made the choice to live in a flat share like most of her young colleagues. "I wanted to start by getting my bearings and meeting people", says the young woman from Aix-en-Provence. 5 years later, this temporary arrangement has become permanent. “Renting a studio flat would cost me double of my current rent. As I work a lot and spend little time at home, I prefer to save on housing and treat myself to a great holiday.”
In Luxembourg City, the supply of small living spaces is limited. Renting a studio costs more than 1,000 euros per month while it costs around 1,600 euros for a two-bedroom house.
Also note that in the capital, prices vary from one neighbourhood to another. Bonnevoie to the south or Beggen to the north are among the most affordable areas, around 1,270 euros per month. The hyper-centre also called Ville Haute, Limpertsberg or Kirchberg are listed as having the most expensive rents, reaching almost 2,000 euros on average.
Between the two, Gasperich or the train station district appear as a good compromise. Near the centre, with an average rent of 1,430 euros.