CBRE report

The Luxembourg communes with the highest rents

Between Sandweiler and Luxembourg City, the average rent difference is 23% according to CBRE data. Photo: Matic Zorman/Maison Moderne/Archives

Between Sandweiler and Luxembourg City, the average rent difference is 23% according to CBRE data. Photo: Matic Zorman/Maison Moderne/Archives

Although property prices have slowed down, the demand for housing remains. This is reflected in the cost of renting a flat in Luxembourg, but also in other segments.

When asked where the highest rents are in Luxembourg, many people guessed it was the capital. However, a study by the real estate consultancy group CBRE, published on 15 February, shows that this is not the case.

Sandweiler: €1,891 per month

In Luxembourg, the municipality with the highest average monthly rent is Sandweiler, with an average monthly cost of €1,891. The municipality located to the east of Luxembourg-City is ahead of Bissen, Niederanven and Contern.

In Luxembourg City, the average rent is €1,539 per month, due to the smaller size of the dwellings, explains the real estate agent.

According to the Statec, the average cost of buying a flat in Luxembourg in the third quarter of 2022 was €695,385. The capital city led the way in terms of price per square metre with €12,643 for new properties and €10,352 for old properties. Interestingly, the municipality of Bertrange, located to the west of the capital, had more or less identical prices per square metre: €12,373 for new and €10,363 for existing properties.

A slowdown but some niches

In its report, CBRE acknowledges that the residential market has reached a new record in 2022. And if between December 2021 and September 2022 the price of land in Luxembourg rose by 5.1%, this increase signals a slowdown compared to the two previous years, the agent writes.

It also expects a further deceleration in the growth of brick prices in 2023. On the rental market, on the other hand, CBRE expects prices to remain stable under pressure from the scarcity of supply in terms of quality. This could also lead prospective tenants to turn to another segment of the rental market: coliving, which is positioned at a lower cost level and is being driven by a series of new projects in Luxembourg, such as Colonies and Cohabs, for example.

Another buoyant sector is that of parking spaces, for which the rent can reach the sum of €450 per month in the central districts of the capital. It is in this area that demand is most pronounced for offices, with a vacancy rate of less than 2%. The prime office rent is €54 per square metre excluding tax.

For this year 2023, 95,000m2 of office space remains available in Luxembourg, while 288,000m2 is already rented or pre-rented.

This story was first published in French on Paperjam. It has been translated and edited for Delano.