Finding housing in Luxembourg can be quite challenging, as the rental market is both competitive and expensive. That's why it's crucial to plan your search in advance to maximize your chances of securing accommodation that suits your needs. In this article, you'll find all the essential information to help you find a place to live in Luxembourg.
Overview of the rental market in Luxembourg
The rental market in Luxembourg is somewhat constrained, particularly in the vicinity of Luxembourg City. Moreover, the growing population of foreign residents has led to an uneven distribution of housing supply, resulting in high demand in urban areas and subsequently driving up rent prices. Given these circumstances, it's highly advisable to refer to the Observatoire de l'habitat for comprehensive information on advertised and registered rental rates.
Criteria for accommodation in Luxembourg
In Luxembourg, the size of the living space is not always the primary concern when searching for a residence. What matters most in the Grand Duchy is proximity to schools or the workplace, despite the presence of a well-connected motorway network and public transportation. On the other hand, the location of a specific neighborhood has a significant impact on housing costs, especially within the capital city.
Looking for accommodation in Luxembourg
People in the Grand Duchy of Luxembourg usually search for housing by perusing advertisements in newspapers or on specialized online real estate platforms. Another option is to enlist the services of a real estate agency, which typically charges fees equal to one month's rent plus 17% VAT. In that case, the fees amount to the equivalent of one month's rent, plus 17% VAT, and are divided equally between the landlord and the tenant.
In addition to real estate agencies, there are relocation agencies that offer comprehensive services to assist clients with various aspects of settling down, including finding suitable housing, locating schools, and more.
Rental lease agreement in Luxembourg
A lease agreement in Luxembourg must be established in written form between the tenant and the landlord. While there is no specific required format for rental lease agreements, the document must include the following information:
- The full identity of all contracting parties (landlord and tenant(s));
- The start date of the lease;
- A description of all rooms and parts of the building covered by the lease, along with the address and cadastral reference;
- The rent amount (excluding charges);
- The amount of advance payments for charges or the flat-rate for charges;
- The additional rent for furniture (if the property is furnished);
- The amount of the rental guarantee (maximum 2 month's rent);
- A statement that the parties may refer to the rent commission in case of a dispute over the rent.
The lease can be signed for either a fixed term or an indefinite term. In the case of a fixed-term lease, it cannot be terminated before the end of the period specified in the contract. If it is not terminated before this date, the lease will be automatically renewed and converted into an indefinite-term contract. Indefinite-term contracts can be terminated at any time by the tenant (with a three-month notice period) or by the landlord (with a six-month notice period).
It is important to note that the law was amended on August 1, 2024, to provide greater flexibility and protection for tenants. However, some agencies or landlords may be unaware of these changes or may attempt to apply the old law, which is more favorable to them (e.g., offering an oral contract or requesting more than two months' rent as a deposit). Therefore, it is essential to remain vigilant.
Pre-occupancy formalities in Luxembourg
Upon signing the lease, the landlord has the option to request a deposit or rental security from the tenant. This deposit is capped at the equivalent of two months' rent and can be given to the landlord as cash or by bank transfer. Alternatively, it can take the form of a bank guarantee or a rental guarantee provided by the State. If there are no disputes between the tenant and landlord upon the tenant's departure, the rental guarantee is refunded to the tenant.
The landlord and the tenant, or their designated representatives, collaborate to create an inventory of the property's condition. It's recommended to prepare two inventories: the initial one before moving in and starting the lease and the final one when the tenant vacates. If the landlord requests a rental guarantee, the law mandates a written and mutually agreed-upon inventory of fixtures to be established before the tenant moves in. However, there's no legal obligation for an inventory of fixtures at the lease's conclusion.
Rent and service charges in Luxembourg
Under Luxembourg's legal regulations, when leasing unfurnished properties, the highest yearly rent permissible is capped at 5% of the owner's invested capital in the property. This rental amount is clearly outlined in the lease agreement and can only be modified every two years.
The tenant might be responsible for covering rental expenses like energy usage, regular upkeep of the residence and shared spaces, minor repairs, and taxes associated with dwelling use. The tenant is automatically accountable for payments related to water, heating/gas, electricity, sewage, waste disposal, chimney cleaning, and central heating maintenance. These expenses are not included in the monthly rent. On the other hand, property taxes and any other taxes linked to the property are the owner's obligation.
Different types of housing in Luxembourg
Luxembourg is renowned not just for its charming landscapes and cultural wealth but also for its allure as a favored choice among expatriates worldwide. The nation provides a range of housing options, spanning from classic homes to contemporary apartments and upscale residences.
Traditional houses in picturesque villages of Luxembourg
Traditional houses in Luxembourg are primarily located in the rural regions of the country. These stone structures adorned with slate roofs exude genuine charm and a cozy atmosphere. Often nestled amidst stunning natural landscapes, they provide a serene lifestyle for those who inhabit them. Generally, these properties are more commonly purchased than leased, given their typical association with permanent residences.
The cost of purchasing varies based on factors like the property's location, size, and condition. In desirable villages like Mullerthal and the Our valley, buying a traditional house can range between 400,000 to 800,000 euros, and possibly even higher for more exclusive properties.
It should be noted that traditional villages are few in the country, where modern constructions are often preferred. Older properties are generally less sought after and therefore represent a less attractive financial investment.
Townhouses in urban centers of Luxembourg
Luxembourg's cities, including Luxembourg City, Esch-sur-Alzette, Dudelange, or Ettelbruck feature an array of townhouses. These residences are frequently situated in proximity to conveniences, public transport, and workplaces. Luxembourg City, in particular, is a favored choice among expatriates. The capital is, in fact, particularly sought after due to its status as an international financial center and its high quality of life.
Urban centers in Luxembourg, primarily Luxembourg City and a handful of other towns, host a selection of townhouses. These properties, frequently showcasing historic architectural styles, draw individuals who appreciate city life and value the convenience of being close to amenities and workplaces.
Given the strong demand and desirable status of these properties, they often come with a substantial price tag for both purchasing and renting. Buying a townhouse in Luxembourg can be quite costly, with prices spanning from 600,000 to over 2 million euros, contingent on the property's location and attributes. Similarly, renting a townhouse can also be pricey, with monthly rates falling within the range of 2,000 to 4,000 euros or even higher.
Modern urban apartments in Luxembourg
Contemporary apartments are in high demand among expatriates who embrace a vibrant urban way of life. Areas like Kirchberg and Belair in Luxembourg City present a diverse range of apartments, encompassing everything from studios to penthouses, all within close proximity to modern conveniences such as restaurants, shops, and parks.
The cost of buying an apartment in Luxembourg is influenced by factors like its dimensions, whereabouts, and the facilities provided by the residential complex. Newly constructed or recently refurbished apartments can command prices ranging from 5,000 to 12,000 euros per square meter. Similarly, rental rates fluctuate based on apartment size and location. For instance, monthly rents for a one-bedroom apartment might fall between 1,500 and 2,500 euros, whereas sizable, upscale apartments can surpass 5,000 euros per month.
Luxury residences in select neighborhoods in Luxembourg
Luxembourg's upscale districts allure well-off expatriates in search of luxurious homes adorned with premium features and exclusive facilities. These sought-after areas comprise Limpertsberg, Belair, and Merl within Luxembourg City, along with specific residential zones near Kirchberg. These opulent properties boast premium finishes, expansive living spaces, and top-tier amenities. The costs of acquiring these upscale properties differ based on the residence's size, location, and available amenities. In the previously mentioned exclusive districts of Luxembourg City, the buying price for a luxury residence can soar into the several million euros range. On the rental side, opulent homes are also accessible at premium monthly rates, varying from 4,000 to 10,000 euros or potentially even higher. This fluctuation depends on the property's dimensions and prestige.
Budget for real estate – buying and renting in Luxembourg
The amount of money needed for real estate in Luxembourg can vary significantly, contingent on factors such as the property type, its location, and its size.
Here's a general estimate of budgets for buying and renting in different types of housing:
- traditional homes to buy: Between 400,000 and 800,000 euros for medium-sized homes, and more for exclusive properties;
- townhouses to buy: From 600,000 euros to over 2 million euros, depending on location and property features;
- modern apartments to buy: Price per square meter can vary from 5,000 to 12,000 euros, depending on location and level of finish;
- modern apartments for rent: Monthly rents for a one-bedroom apartment range from 1,500 to 2,500 euros, and can rise considerably for larger, more luxurious apartments;
- luxury homes to buy: Several million euros for top-of-the-range properties in prestigious neighborhoods;
- luxury residences for rent: Monthly rents for luxury residences can range from 4,000 to 10,000 euros or more, depending on the size and standing of the property.
It's important to highlight that these approximations are meant as guidelines and might change due to the constantly evolving real estate landscape in Luxembourg. As a result, expatriates and prospective buyers are encouraged to seek advice and updated information from local real estate agents when considering purchasing or renting property in Luxembourg.
Luxembourg's most popular regions
In Luxembourg, several cities are particularly sought after in terms of real estate due to their features, proximity to amenities, high quality of life, and appeal to both local residents and expatriates. Here are some of the most sought-after cities, region by region, for real estate in Luxembourg:
Northern Luxembourg
Mersch: Ideally located between Luxembourg City and Ettelbruck, Mersch offers the best of both worlds: the convenience of urban amenities and the charm of a natural setting. Surrounded by greenery, this town provides a high quality of life with plenty of leisure, shopping, and service options. Perfectly connected to the capital, just 20 minutes away by car or train, Mersch is a popular choice for those seeking a balance between city life and tranquility.
Ettelbruck: Located in the northern part of Luxembourg, Ettelbruck is a vibrant town known for its friendly atmosphere. It is well-connected to Luxembourg City and offers a good variety of housing, amenities, schools, and sports facilities. This makes Ettelbruck a popular choice for residents working in the area.
Diekirch: The picturesque town of Diekirch is ideal for those who desire a peaceful lifestyle without sacrificing convenience. It is famous for its beautiful surroundings, particularly the Sûre Valley, which offers numerous opportunities for outdoor activities.
Clervaux: The Clervaux region, with its stunning landscapes, medieval castles, and lush forests, is highly sought after by individuals looking for a tranquil environment and easy access to nature.
Luxembourg Center
Luxembourg City: As the capital of the country, Luxembourg City is a highly sought-after destination in the real estate market. It serves as the economic and financial center, drawing international professionals, expatriates, and diplomats. The city offers an exceptional quality of life, hosts European and international institutions, provides excellent services, features parks, dining options, and shopping districts, and seamlessly blends modernity with history, exemplified by its UNESCO-listed old quarter.
Hespérange: Located just south of Luxembourg City, Hespérange is a highly sought-after area thanks to its proximity to the capital while maintaining a peaceful, residential feel. The town is surrounded by greenery and features parks such as the Hespérange Park, which is perfect for outdoor activities. Its strategic location, excellent public transport links, and variety of amenities make it an attractive choice for families and professionals alike.
Niederanven: Located to the east of Luxembourg City, Niederanven is an attractive commune known for its peaceful surroundings and proximity to the capital. Well-served by public transport, it offers quick access to Luxembourg City and the airport. The commune is also appreciated for its green spaces and numerous trails, perfect for hiking and nature enthusiasts. With modern infrastructure and high-quality services, particularly for children, Niederanven is an ideal choice for families and professionals seeking a balance between comfort and tranquility. However, it is worth noting that it is one of the most sought-after cities in the country and, consequently, also one of the most expensive.
Contern: Located to the southeast of Luxembourg City, Contern is known for its tranquil, rural charm while being within easy reach of the capital. It is especially popular among expatriates and families seeking a quieter environment without sacrificing convenience. The area is renowned for its scenic countryside, cycling routes, and cultural events, such as the annual comic book festival, which adds a unique touch to the town's appeal.
Strassen: Near Luxembourg City, Strassen is a favored community among families and professionals seeking a harmonious blend of urban living and tranquility. Strassen provides a diverse range of housing options, green areas, and top-notch amenities.
Bertrange: Bertrange, a well-liked municipality located to the west of Luxembourg City, presents an array of housing choices, ranging from contemporary townhouses to upscale homes. It is valued for its international schools, shopping options, green areas, and convenient connectivity to the capital.
It should be noted that the Central region is the most sought-after in the country and, consequently, also the most expensive due to the presence of the capital. Other towns in this region also attract residents, such as Sandweiler, Walferdange, Bridel, Kopstal, Steinsel, and Schuttrange.
Southern Luxembourg
Esch-sur-Alzette: Being the country's second-largest city, Esch-sur-Alzette is an important industrial, cultural, and educational hub. The city features a diverse real estate market, encompassing contemporary apartments, townhouses, and even traditional houses, all available at comparatively reasonable rates when juxtaposed with Luxembourg City. Esch-sur-Alzette is a favored choice among professionals within the area. Furthermore, for individuals aspiring to study in Luxembourg, the University of Luxembourg is situated in Esch-sur-Alzette.
Belvaux: Situated in close proximity to Esch-sur-Alzette, Belvaux is recognized for its serene environment and abundant green areas. This locale provides a tranquil living choice while maintaining easy access to the region's conveniences and infrastructure.
Remich: Nestled on the banks of the Moselle River in the southeastern part of Luxembourg, this delightful small town appeals to individuals in search of a tranquil riverside existence, offering picturesque vistas and opportunities for serene relaxation.
Mondorf-les-Bains: Located in the southeastern region of Luxembourg, this commune is renowned for its thermal springs and rejuvenating spa. Mondorf-les-Bains is highly desired due to its serene environment, abundant green areas, and prospects for relaxation, rendering it an ideal choice for individuals in pursuit of an exceptional quality of life.
Other towns in the Southern region are also popular and stand out for their diverse and high-quality infrastructure. This is the case, for example, with Dudelange, Differdange, Pétange, and Bettembourg.
West of Luxembourg
Several communes in the west of the country are highly sought after, as they offer proximity to Luxembourg City while allowing residents to enjoy all local amenities. Their strategic location near the Belgian border also provides easy access to shopping and services in Arlon and its surroundings. Among the most popular towns in the west of Luxembourg are Mamer, Capellen, and Steinfort.
East of Luxembourg
The east of the country is becoming increasingly popular with residents. Bordered by the Moselle and the Sûre rivers, this region boasts stunning landscapes and a wide range of outdoor activities, including water sports. Grevenmacher, the main town in the area, stands out for its numerous amenities and attractions, such as the Butterfly Garden, several wineries offering tastings, and its annual wine festival. The proximity to Germany, especially the city of Trier, which offers a wide variety of shopping and services, further enhances the region's appeal. In addition to Grevenmacher, other sought-after towns in the region include Wasserbillig, Betzdorf, and Flaxweiler.
Useful links:
Expat.com's Luxembourg real estate ads
Observatory
Ministry of Housing
At Home
Immotop
Wortimmo
Students and trainees
Appartager.lu
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