Luxembourg is located in the centre of Western Europe. Its modest territory of 2,586 km² is home to only 660,000 people. However, it is far from a poor country: its economy used to be based on heavy industry, but in recent years it has become a centre of capital attraction due to state regulation of the financial sector.
Benefits of Property for Sale in Luxembourg
Buying real estate in Luxembourg mainly attracts investors; expats are less likely to choose the country for moving, as housing is far from the cheapest in Europe. However, local real estate has its advantages:
- Rental market. 70% of the capital's residents are expats who do not own real estate on a permanent basis, but rent it. This provides a good rental income of 3-5% per annum.
- Transparent legal system. Buying real estate in Luxembourg is regulated by a notary system, which ensures the security of transactions. Foreigners have equal rights with citizens to own residential real estate.
- Infrastructure. Luxembourg has free public transport and a well-developed motorway network, so even housing in the suburbs remains attractive.
How much is Real Estate in Luxembourg
Luxembourg real estate can be purchased for an average of €800,000–€1,200,000 (for an 80 m² apartment in the capital), while a 150 m² house will cost from €1,500,000. Rent of an apartment in the city centre starts from €25–35/m². The main factor behind the high prices is the lack of land: only 2% of the country’s territory is available for development due to strict environmental standards. The secondary market remains popular due to lower prices, but such housing often requires renovation.
Average house prices in Luxembourg:
| Property type |
Average price per m² (€) |
Notes
|
| Apartments (new buildings) |
8,500–13,500 |
Mainly in the capital, class A/A+ |
| Apartments (secondary) |
6000–9000 |
Old buildings, renovation possible |
| Houses/townhouses |
7,500–12,000 |
Suburbs or elite areas of the capital |
Where is the Best Place to Buy Property in Luxembourg
The capital is home to 70% of the country's economic activity, making it the city with the highest demand for real estate among expats and investors. Popular areas include Kirchberg, Limpertsberg and Gaar.
Prices in Luxembourg City:
| District |
Average price per m² (€)
|
Property type
|
| Kirchberg |
9,500–15,500 |
New buildings, premium class apartments |
| Limpertsberg |
9,500–12,000 |
Apartments and houses, family areas |
| Gar |
10,000–12,500 |
Historical buildings, secondary market |
The second largest city, Esch-sur-Alzette, with a population of around 36,000, is an industrial centre with a cultural scene and more affordable prices of €6,500–€8,500/m². Suitable for young families and those working in the southern cantons.
Mosel is a wine region in the east, along the Mosel River. Popular towns include Grevenmacher and Remich, where houses with vineyard views sell for €700,000–€1,400,000. The region is attracting investors thanks to price increases of 3% per year.
Prices in the Mosel region:
| Property type |
Average price (€) |
Notes |
| House |
700,000–1,400,000 |
Vineyards, view areas |
| Apartment |
450,000–750,000 |
Compact apartments |
Mersch (30 km from the capital) and northern towns such as Wiltz and Clervaux offer affordable accommodation for those who prefer the quiet of the countryside.
Prices in the northern cantons:
| City |
Average price per m² (€) |
Property type |
| Mersh |
5000–6500 |
Houses, secondary housing |
| Wiltz |
4500–6000 |
Houses, small apartments |
These regions are suitable for those who are planning to buy a house in Luxembourg, but are looking for budget options. Investors will be interested in the presence of agricultural farms, where many seasonal workers come to work. They create demand for short-term rentals.
