Luxembourg · report
Buy or rent in Luxembourg
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
- €3,569
- Owning per month
- €2,764
Try your own numbers
Starting from the mean sale price of existing apartments, €7,773/m², and the asking rent of an apartment, €39.7/m² a month without charges (2025), in Luxembourg, and a mortgage rate of 3.6%.
Owning costs less each month than renting.
- Rent a month
- €3,569
- Owning a month, not recovered
- €2,769
- Interest
- €1,889
- Running costs
- €583
- Return given up
- €297
- Cash out a month, if buying
- €3,446
Gross rental yield in Luxembourg
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 |
|---|---|
| 2025 | 6.1% |
| 2024 | 5.8% |
| 2023 | 4.7% |
| 2022 | 4.7% |
| 2021 | 4.6% |
| 2020 | 5.5% |
| 2019 | 5.4% |
| 2018 | 5.3% |
| 2017 | 4.9% |
| 2016 | 4.9% |
| 2015 | 5.1% |
| 2014 | 5.1% |
| 2013 | 5.0% |
| 2012 | 4.9% |
| 2011 | 5.0% |
| 2010 | 5.0% |
| 2009 | 5.2% |
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
At the average sale price of existing apartments, a 90 m² home costs €699,612. With 10% down and a 30-year mortgage, the payment is €2,859 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
- 22%
- Payment, one income
- 44%
In 2025, apartments were advertised at 21.7% more per m² than apartments sold for. A year ago the gap was +26.1%.
- Gap today
- +21.7%
- Change in a year
- −4.3 pp
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
- Per 1,000 residents
- 5.7
Sale prices have fallen by 3% or more once since 2007. That fall began in 2022.
- Deepest fall
- −11.8%
- Recovery from the low
- Not yet
In 2022 the population grew by 16,252 while 3,471 homes were finished: 4.7 new residents for every new home.
- New residents per new home, 2022
- 4.7
- Population change, 2022
- +16,252
5.8% of the 263,671 homes counted in the 2021 census had nobody resident in them.
- Empty, 2021 census
- 5.8%
- Empty homes
- 15,337
Public bodies signed €14.6M of housing works here in 2025, and €47M since 2018.
- Signed in 2025
- €14.6M
- Per resident, 2025
- €21