Luxembourg real estate market

Luxembourg is one of the most developed countries in the world, not just in Europe. Thanks to its excellent economy it has one of the highest GDP per capita. That leads to a constant flow of foreign workers. As a result of that, Luxembourg’s real estate market is a dynamic one, driven by a continuous demand for rooms, houses, and flats for rent.

More than ⅔ of the local population owns a house or a flat, and they don’t contribute much to the high demand for residential property. According to the 2018 census, Luxembourg has a population of just 602,005. That makes it one of the less-populated countries in Europe but at the same time one that has the fastest population growth rate.

Luxembourg property market

Real estate market in Luxembourg

In Luxembourg, the real estate market is not big enough to serve the many requests. Almost without exception, all rental properties are in a pretty good condition. As a result of that, the cheapest ones are quickly rented. If you’ve been in Luxembourg, then you’ve noticed that rental boards on apartments and houses are very rare.

Generally speaking, the real estate market is dictated by the owners that dictate the contract of lease. Of course, all within the regulatory framework. That way the tenant’s rights are protected.

Where to start?

Whether you are looking to rent a room in Luxembourg or maybe an entire flat, you need first to check what’s offered on the market. The full listing of the houses and apartments for rental in Luxembourg is published at Observatoire de ‘l’ habitat, a government-run website. According to the latest report, there are 2,808 rental apartments and 358 rental houses. The ones available to rent can be found on the local online property portals and in newspaper ads.

So, it’s either that or you go through a real estate agency. However, if it is your first time in the country you might be surprised by the fact that many of the rental places come without furniture. If you are not into that, then there are rental companies that offer only furnished properties.

rent a room Luxembourg

Rental contracts in Luxembourg

Once you find a place that you like, you will be asked to sign a rental or a lease contract. All the contracts in Luxembourg are issued in one of the local languages – Luxembourgish, German, and French. Therefore, if you don’t speak any of the languages, you might consider hiring a translator. Typically, the rental contract is signed for a fixed term, and if you are foreigner, you will be required to provide identification (passport), income level, employment status, and if possible references from a previous landlord.

Tennant rights in Luxembourg

Luxembourg’s renting system is pro-tenant. Landlords can’t increase the rent on their own and whenever they want, but only every other year and the increase to be based on the index published in the Official Government Gazette –  Memorial – Journal Officiel du Grand-Duche de Luxembourg. The only exception to this rule is if it is a luxury property.

After the lease is over, tenants are expected to return the property in the same condition as when it was received. However, damages caused by general wear on normal use is not taken into consideration and will not affect the deposit.

In conclusion

Most rooms and apartments are rented at first seeing. Almost all places look good and are in good condition. Generally speaking, the landlords are considered very reasonable and rarely when any disputes are taken to court. Then there is the rental law that is pro-tenant.

All in all, renting a place in Luxembourg is easy and pretty straightforward. It is a nice little country with a really low crime rate, excellent economy, and cultural people. Living there can be a delight and a pleasure.