What should you expect to pay for a rental, per square metre, in Luxembourg City?
Dispersion is large. It depends on the district and whether you look for a luxurious or standard flat, the number of rooms. It hovers between €30 and €40 [per month] although we usually do not talk about the price of a flat in terms of square meters. €40 applies to a fully furnished flat with charges included. The charges for a standard rental are around €250 to €300. As an example, I am about to have a tenant sign a rental contract on Marechal Foch street in the nice part of Belair for €2,500, for which I got 30 requests for a visit. The 94m2 flat has three bedrooms, a rare occurrence, has no parking but has a balcony.
As potential tenants are responding to a load of offers, I often advise landlords to quickly sign a good candidate and to not, as in the stock market, try to sell at the top of the market. One must remember that we are under the system based on offer and demand. A future tenant may also offer to pay more to increase his chance to get the ideal flat.
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Rents have increased significantly since 2022 because of higher interest rates. As people can’t afford to buy, they decided to stay put, reducing the turnover of rental flats available. When people are divorcing or having a new family member, they will also elect to rent instead of buying. The lack of turnover is coupled with an average of 10,000 newcomers in Luxembourg every year. The rental market is very stretched.
As landlords can’t increase rent and expel a tenant at will on a back of a very protective regulation, the former wants tenants to stay for a while, but not too long.
What are the best sources to find a flat in Luxembourg?
Word of mouth is the best source. Remax has a relevant app given its 16 agencies in Luxembourg. Otherwise, the best tools are athome.lu, immotop.lu and wortimmo.lu… Bingo has the potential to become an important source given its exposure in the Paperjam newsletter. I always look at the proposals in the morning and in the afternoon.
Are there public policies that are helping newcomers to find accommodation?
Not really for newcomers. Yet on logement.lu, one can assess as per the marital status and his/her revenues whether he/she is eligible to receive financial aid from the state.
What are the rules on guaranteed deposits?
The standard is two [outside Luxembourg City] to three months [in the city]. I have never seen more. A draft law is looking to standardise the rule at two months. Otherwise, the youth coming for a traineeship can also present a guarantee from their parents. What is important for a tenant is to prove to the landlord that he/she has the financial wherewithal to pay the rent. As a rule of thumb, a candidate is retained when his net salary is more than threefold his rent including charges. Yet all relevant documents that would prove the solvency of a tenant may be presented to the landlord.
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