Accommodation in Luxembourg
The rental market in Luxembourg is relatively small, so it's important to be proactive when searching for housing. In this article, you'll find all the essential information to assist you in securing accommodation 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 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 can be established through verbal communication or in written form between the tenant and the landlord. However, it is highly advisable to have it documented in writing to ensure a positive relationship between both parties and to prevent potential disagreements. While there is no specific required format for rental lease agreements, the document must include the following information:
- Lease term;
- Cancellation terms (whether or not notice is required);
- Any modifications to which the tenant is entitled during the occupancy of the premises;
- Rent and installments;
- Rental costs.
It's important to note that the lease is automatically extended after the agreed-upon period specified in the contract. Therefore, if either party does not intend to continue the lease after its term ends, they must communicate this intention following the notice period outlined in the contract or as customary for the property. In situations where the lease is verbal, its duration remains indefinite.
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 three months' rent and can be given to the landlord as cash. 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. However, if the lease agreement incorporates a value clause (such as rent adjustments tied to the cost-of-living index), the biennial rent review provision is rendered void starting from the first term following the date of a registered mail complaint submitted by the tenant.
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.
Townhouses in urban centers of Luxembourg
Luxembourg's cities, including Luxembourg City, Esch-sur-Alzette, and Dudelange, feature an array of charming historical townhouses. These residences are frequently situated in proximity to conveniences, public transport, and workplaces. Luxembourg City, in particular, is a favored choice among expatriates, given its recognition as a global financial hub and its exceptional standard of living.
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 10,000 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 10,000 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, some areas stand out as particularly sought-after in the real estate market due to their unique features, easy access to amenities, outstanding quality of life, and attractiveness to both local residents and expatriates. Here are a few of the most popular regions for real estate in Luxembourg:
Northern Luxembourg
Ettelbruck: Located in the northern part of Luxembourg, Ettelbruck is a vibrant town known for its friendly atmosphere. Its excellent connections to Luxembourg City and neighboring countries make it a popular choice for commuters. Ettelbruck offers a wide range of housing options, amenities, schools, and sports facilities.
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.
Kirchberg: Situated in proximity to Luxembourg City, the Kirchberg district houses numerous European and financial establishments, rendering it an appealing choice for professionals and expatriates engaged in these industries. It provides contemporary apartments, lush recreational areas, sports, and cultural amenities, as well as shopping complexes.
Limpertsberg and Belair: These exclusive residential neighborhoods within Luxembourg City are in high demand due to their serene and refined atmosphere. They present luxury homes, green spaces, prestigious international schools, and convenient proximity to the city center.
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.
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 spas. 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.
Useful links:
Expat.com's Luxembourg real estate ads
Observatory: https://mlog.gouvernement.lu/fr/le-ministere/observatoire-de-habitat.html
Ministry of Housing: www.ml.public.lu
At Home: www.athome.lu
Wortimmo: www.wortimmo.lu
Students and trainees: https://www.jugendinfo.lu/logement/
