In the first quarter of 2022, more than 600 tenants shared their residential preferences across various dimensions in the Luxembourg market with CBRE, the world’s largest commercial real estate services and investment firm. The perspectives vary from household composition to property characteristics to homeownership.
The study shows that about 63% of renters in Luxembourg live in an apartment, while just over a quarter live in a house, and the remaining live in studios and student rooms.
The average monthly rent is €1,403/month, with €178 in monthly expenses added to the rent, bringing the total to around €1,581/month. Less than a quarter of respondents pay less than €1,000 per month in rent, while 13% pay more than €2,000. A total of 41% indicate they pay more than €200 in monthly costs on top of the rent. Almost one-fifth of tenants (19%) pay less than €100 in additional costs per month.
When CBRE asked tenants about their household’s financial situation, over 56% of respondents indicated living in a household where both partners have an income. On the other hand, 37% live by themselves, while 7% fully depend on their partner to make their living. Reported household income lies between €20,000 and €80,000.
In addition, 83% of tenants would rather buy instead of renting a property. But when asked about the obstacles preventing them for effectively buying a property, 75% of respondents stated financial reasons in terms of monthly payments, down payment, and access to mortgage loans.
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When asked about what kind of amenities tenants would like to pay extra for, 32% claimed that they would pay more for a garden, followed by a terrace (23%), parking space (22%), high-speed internet (16%) and a residence on a top floor (7%). It’s noteworthy that tenants in large buildings are more inclined to have extra social amenities such as leisure space, fitness, shared rooftop, concierge, and dry cleaning.