Luxembourg City · report
Buy or rent in Luxembourg City
Owning a 90 m² apartment costs less each month than renting it. Owning counts interest, running costs and the return the deposit could earn, at the mean price existing apartments sold for; rent is the asking rent. Repaying the loan is saving, so it is left out.
- Rent per month
- €4,088
- Owning per month
- €3,652
Try your own numbers
Starting from the mean sale price of existing apartments, €10,270/m², and the asking rent of an apartment, €45.4/m² a month without charges (2025), in Luxembourg City, and a mortgage rate of 3.6%.
Owning costs less each month than renting.
- Rent a month
- €4,088
- Owning a month, not recovered
- €3,659
- Interest
- €2,496
- Running costs
- €770
- Return given up
- €393
- Cash out a month, if buying
- €4,552
Gross rental yield in Luxembourg City
A year's asking rent as a share of the mean sale price, apartments, for each year the Observatoire de l'Habitat published both. Higher means rent is dear compared with buying.
Show the numbers
| Period | Luxembourg City |
|---|---|
| 2025 | 5.3% |
| 2024 | 5.2% |
| 2023 | 4.3% |
| 2022 | 4.1% |
| 2021 | 3.8% |
| 2020 | 4.4% |
| 2019 | 4.2% |
| 2018 | 4.3% |
| 2017 | 4.2% |
| 2016 | 4.2% |
| 2015 | 4.5% |
| 2014 | 4.8% |
| 2013 | 4.8% |
| 2012 | 4.5% |
| 2011 | 4.7% |
| 2010 | 4.8% |
| 2009 | 5.1% |
The comparison counts only the costs of owning you never get back: interest, running costs and what the deposit and purchase costs could earn elsewhere. Loan repayments build equity, so they are left out. So is any rise in the home's value, because nobody knows it in advance. Rents here are the asking rents of apartments listed on immotop.lu, charges excluded (Observatoire de l'Habitat), so they run above what sitting tenants pay and the yield reads a little high. A commune with too few listings takes its canton's figure, or Luxembourg's.
Other reports for Luxembourg City
Figures for Luxembourg canton: Luxembourg City has no reliable figures of its own.
At the average sale price of existing apartments, a 90 m² home costs €924,268. With 10% down and a 30-year mortgage, the payment is €3,777 a month. Luxembourg sets no cap on the payment; the CSSF caps the loan at 100% of the home's value for first-time buyers who will live in it, 90% for other owner-occupiers and 80% for other buyers.
- Payment, two incomes
- 29%
- Payment, one income
- 58%
In 2025, apartments were advertised at 20.4% more per m² than apartments sold for. A year ago the gap was +28.8%.
- Gap today
- +20.4%
- Change in a year
- −8.4 pp
Figures for Luxembourg canton: Luxembourg City has no reliable figures of its own.
18.7% fewer homes were licensed for construction in the last 12 months than in an average year of the past decade.
- Licensed, 12 months
- 3,914
Sale prices have fallen by 3% or more 2 times since 2007. The deepest began in 2022.
- Deepest fall
- −13.5%
- Recovery from the low
- Not yet
10.0% of the 61,920 homes counted in the 2021 census had nobody resident in them.
- Empty, 2021 census
- 10.0%
- Empty homes
- 6,189