The Luxembourg real estate market remains one of the most stable and attractive in Europe. A high standard of living, a robust economy, and an influx of foreign specialists sustain strong demand for housing, particularly in the capital and surrounding areas. In 2024, the market continues to show steady price growth despite external economic factors.
The Economy and Its Impact on Real Estate
Luxembourg ranks as one of Europe’s leading financial hubs. The country’s thriving economy attracts expatriates, creating additional demand for housing. High income levels and a stable job market further boost interest in property, both for personal use and as an investment.
Current Property Prices
The average cost per square meter in Luxembourg is approximately €10,500. Over the years, the market has consistently demonstrated annual price growth of 2.5–3%. For example, a three-bedroom apartment in the capital can range from €900,000 to €1,300,000, depending on location and property condition.
Nevertheless, property and rental prices continue to rise due to limited housing supply. This trend is expected to persist in the coming years.
Rental Market
The rental market in Luxembourg remains highly in demand, particularly among expatriates, students, and temporary workers. Average rental yields stand at approximately 4% annually. Central districts of the capital are the most popular; however, high rental rates often drive tenants to consider options in the suburbs.
Tax Aspects and Purchasing Costs
Purchasing property in Luxembourg involves additional expenses. Registration and notary fees range between 8.7% and 11.7% of the property’s value. For instance, buying an apartment worth €1,000,000 may incur additional costs of up to €117,000.
Rental income is subject to a progressive income tax (ranging from 0% to 42%), and capital gains from selling properties held for less than two years are also taxed.
Opportunities for Investors
For foreign investors, the Luxembourg real estate market offers unique opportunities. There are no restrictions on foreign nationals buying property. The high liquidity of properties and stable demand make the country’s real estate a reliable long-term investment. Well-developed infrastructure and transparency in transactions attract international buyers.
Forecast for 2024 and Beyond
Experts predict that Luxembourg’s real estate market will continue to grow at a steady pace. Strong demand for housing, limited supply, and a stable economy will contribute to further price increases. However, buyers and investors are advised to consider potential changes in tax regulations and global economic conditions.
Conclusion
Luxembourg’s real estate remains one of the most reliable assets for purchase and investment. Consistent price growth, strong demand, and a stable economy make this market appealing to both locals and international investors. However, it is essential to factor in all costs, carefully select properties, and stay informed about market and legislative changes.
