HOUSING
Interview with Claire, Monde Avenir
Every year, Luxembourg welcomes up to 13,000 / 14,000 new inhabitants, which makes housing the main constraint.
The property market is still under pressure in Luxembourg. Rising interest rates have led to a slowdown in the volume and price of transactions. As a result, those who have the opportunity to invest are faced with an unprecedented situation: choice.
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When should I start looking? September? January?
The people who want to be settled by September are generally families. After Easter is a good time to start prospecting. I recommend setting up an alert on a property platform such as immotop.lu or vivi.lu, which are less well known but very reliable because they depend on the Chambre Immobilière du Grand-Duché de Luxembourg.
On the other hand, there are arrivals and departures throughout the rest of the year. These are often young working people who arrive 2 days before they start work. They are looking for a furnished flat-share. In recent months, a large number of options have been created in Luxembourg City
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What is the average rental price? For a purchase?
To rent
Rents have risen by an average of 11% this year. The difficulties of becoming a homeowner have put pressure on the supply of rental properties: there are far fewer offers and landlords are much more careful about the financial capacity of applicants
Among the most expensive districts, with a monthly price of up to €45/m2 or more, are those with a high proportion of small flats (studios or 1-bedrooms) to rent: Ville-Haute, Ville-Basse, Gare, Cloche d'Or and Cessange, on the other hand, the neighbourhoods more popular with expats, Limpertsberg, Belair and Kirchberg.
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Very few houses are available to rent, so you should expect to pay at least €24/m2 each month. This may seem a lot less than the price of renting a flat, but you're not talking about the same surface area at all. Houses are generally much more spacious than flats. They are not generally in the same state of repair either.
Outside the capital, there aren't enough statistics published to give averages, but monthly rents can be as high as €19/m2.
Buying
The volume of sales has fallen by around 40%. This fall in the number of transactions is beginning to have an impact on prices. So, for the first time since 2009, prices are falling (by 5% in the 1st quarter of 2023, and by between 7% and 8% in the 2nd quarter of 2023), and supply is fairly varied.
Flat prices in the capital range from €9,000 to €14,000/m2. In the districts most soughtafter by expatriates, prices per m2 are around €13,000 / €14,000. Merl and Bonnevoie are also relatively popular with expatriates and are slightly cheaper. House prices are generally lower than flat prices, so the price per m2 in the capital is around €10,000.
Around the capital, neighbouring towns all have prices per m2 above €10,000: this is the case for Kopstal to the north, Niederanven to the east and Hespérange to the south. To the west, Bertrange has almost the same prices as the capital, and Strassen and Mamer are also relatively expensive towns.
Outside the city, are there any areas that are par1cularly recommended?
I recommend a triangle approach:
Where do you work? Where's your school?
The answer to these two questions determines where you will live.
You need to be aware that 200,000 cross-border commuters arrive in Luxembourg every morning, and that the majority of people converge on Luxembourg. This heavy traffic generates frequent accidents and traffic jams, which completely changes the perception of distances .
Time needed to go to Luxembourg from :
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Is there anything special you need to know?
A wall and ceiling refurbishment is equivalent to a total refurbishment of the property, and if your contract mentions a new dwelling, you'll have to make it new; the notion of state of use is not the same as in France.
You should also pay attention to the lease end date and the notice period that applies. It is possible that a lease can only be terminated on its anniversary date. The bank guarantee seems reassuring, but be aware that your bank will not ask the landlord for proof, so money may be withdrawn from your account without you knowing the reason.
When you sign the lease, you must have 5 months' rent in advance to cover all expenses, but this is becoming more common everywhere.
I have to conclude by saying that Luxembourg really is a great place to live. It takes a little time to get used to it, and you shouldn't neglect your comforts as soon as you arrive. Once you've done that, it's a great experience and a place where your family will flourish.
