Have you had a job opportunity in Luxembourg and would like to move there? Then you're in for your first surprise: property prices in Luxembourg! Here's everything you need to know about rental prices.
In a nutshell:
- The average rent in Luxembourg is 1647€/month with 28.48€/m².ranging from €1,200 in the suburbs to over €3,500 in the most sought-after areas of the capital.
- Flats dominate the market (85% of the stock) with prices from €850-1400 (studio), €1200-2000 (1 bedroom), €1600-2800 (2 bedrooms) depending on location
- The rental market has become ultra-competitive due to the slowdown in saleswith 15-20 applicants per ad within the first 48 hours following publication of the property on the real estate platforms
- Alternatives exist to reduce costs: subsidised affordable housing, shared accommodation (€600-900), coliving (€800-1200) and corporate housing through employers
Table of contents
What is the average price of a rental property in Luxembourg?
The Grand Duchy has one of the tightest property markets in Europe: it suffers from a chronic housing shortageand therefore particularly high prices.
The figures speak for themselves: According to the latest figures, the average price of a rented flat is €1,647 per month, with an average rental price per square metre of €28.48.
Prices vary enormously depending on location, from €1,200 in some outlying towns to over €3,500 in the most sought-after areas.
What are the trends in the rental market in Luxembourg in 2026?
The sales market has slowed considerably since rates were raised in 2022. Before, rates were at 1%: everyone wanted to (and could) buy in Luxembourg. Since then, many buyers have put their plans on hold and stayed renting.
As a result, there is less turnover, and the Luxembourg rental market has become very competitive in many areas.
Here is what we can expect in 2026:
- Demand for rental accommodation is exploding in the suburbs: Communes such as Hesperange, Bertrange and Strassen are seeing their prices soar, sometimes exceeding those of Luxembourg City.
- Affordable housing is in chronic shortage : Only 13 communes still offer average rents of less than €1,500. Affordable housing for sale is becoming increasingly rare.
- Competition is fierce: Each ad attracts an average of 15 to 20 applications within 48 hours of publication.
- Processes are increasingly digitised: Virtual visits and online files are becoming the norm. As a result, many expatriates are committing to properties remotely, very quickly.
If you're arriving in Luxembourg soon and are looking for your first home, you should be aware that there will be plenty of competition. Be prepared to be very reactive! However, if you want to buy a property, you will have more room to negotiate. If you are interested, you can simulate your mortgage in Luxembourg (or even find the best rate in Luxembourg).
What are the rents for a flat in Luxembourg?
Flats account for just over 85% of the rental stock in Luxembourg. Here are the price ranges according to surface area, and a few examples of prices by geographical area:
- For a studio (25-35m²), allow €850 to €1,400/month
- In Luxembourg City: €1,200 to €1,400
- In the suburbs of Luxembourg: €950 to €1,200
- In more remote areas: €850 to €1,100
- For a 1-bedroom flat (45-60m²), the rent is €1,200 to €2,000/month
- In Luxembourg City: €1,600 to €2,000
- In the suburbs of Luxembourg: €1,400 to €1,700
- In more remote areas: €1,200 to €1,500
- For a 2-bedroom flat (70-90m²), the rent is €1,600 to €2,800/month
- In Luxembourg City: €2,200 to €2,800
- In the suburbs of Luxembourg: €1,800 to €2,400
- In more remote areas: €1,600 to €2,000
- For a large flat with 3 or more bedrooms (90-120m²), expect to pay between €2,200 and €3,500 per month.
- In Luxembourg City: €2,800 to €3,500 or more
- In the suburbs of Luxembourg: €2,200 to €2,800
- In more remote areas: €1,900 to €2,400
What are the rents for a house in Luxembourg?
Houses are particularly attractive to expatriates arriving with their families and looking for more space, in a peaceful setting. Prices are generally higher:
- 3-bedroom house (120-150m²) : 2,500 to €4,000/month
- House 4-5 bedrooms (150-200m²) : 3,200 to €5,500/month
- Prestige homes (200m²+) : 4,500 to €8,000/month
Towns such as Kopstal, Lorentzweiler and Steinsel offer an excellent compromise between quality of family life and relative accessibility, with houses that can be rented for between €2,800 and €3,800 (although you will have to drive a little to get to work).
How can I pay less rent in Luxembourg?
Many newcomers are disappointed by the price of rent in Luxembourg, and are looking for a more affordable alternative. Here's what might interest you:
- Register for affordable housing. This is accommodation where the rent is subsidised by the Luxembourg government. Applications can be made via the Fonds du LogementHowever, it is means-tested. Waiting times can be very long.
- Putting yourself in a shared flat: More and more young working people are opting for this option. It allows you to pay less rent (€600 to €900/month for a private room in a house or large flat) and meet new people. But in exchange, you'll have less privacy.
- Joining a coliving scheme: it's a new form of housing that is expanding in LuxembourgThere are advantages and disadvantages. For example, it will be more expensive than sharing (€800-1200/month), but you will have more privacy.
- Applying for corporate housing : Some employers may offer you accommodation (a flexible lease, or furnished accommodation for a fixed period), or finance part of your rent. Ask the human resources department of the company that recruited you.
What is the rent per m² in Luxembourg?
The price per square metre for renting in Luxembourg depends mainly on the location of the property. Here are some indicative prices:
- Luxembourg City : 35€ to 50€/m² depending on the area
- Premium neighbouring municipalities (Sandweiler, Bertrange) : 30€ to 35€/sq.m
- Suburbs of Luxembourg : 25€ to 30€/sq.m
- Communes on the outskirts (West region) : 20€ to 25€/sq.m
- Border areas (south of the country, north of the country) : 15€ to 22€/sq.m
Don't forget to include service charges in your calculation, which generally represent 15% to 25% of the basic rent.
To find out how to find accommodation in Luxembourg, see this article.
Data source : Housing Observatory reports
FAQ: Frequently Asked Questions
What will be the average rent in Luxembourg in 2026?
The average rent in Luxembourg is €1,647 per month, with a price per square metre of €28.48.. Prices vary enormously depending on location, from €1,200 on the outskirts to over €3,500 in the most sought-after areas of Luxembourg City.
How much does it cost to rent a studio in Luxembourg?
A 25-35m² studio apartment costs between €850 and €1,400 a month, depending on location. In Luxembourg City, you can expect to pay between €1,200 and €1,400, in the suburbs between €950 and €1,200, and in more remote areas between €850 and €1100 per month.
How much does a 2-bedroom flat cost in Luxembourg?
A 2-bedroom flat of 70-90m² rents for between €1,600 and €2,800 a month. In Luxembourg City, prices reach €2,200-€2,800, in the suburbs €1,800-€2,400, and in outlying districts €1,600-€2,000.
How much does it cost to rent a house in Luxembourg?
Houses rent for between €2,500 and €8,000 a month, depending on size and location. A 3-bedroom house costs €2,500-4,000, a 4-5-bedroom house €3,200-5500, and prestige properties exceed €4,500 per month.
Why are rents so expensive in Luxembourg?
Luxembourg is suffering from a chronic shortage of housing in the face of explosive demand. The slowdown in the sales market since 2022 has increased the pressure on rental properties, creating fierce competition with 15-20 applications per advert.
How can I pay less rent in Luxembourg?
There are several solutions: apply for affordable housing subsidised by the Housing Fund, opt for shared accommodation (€600-900/month), choose coliving (€800-1200/month), or negotiate corporate housing with your employer.
Where are the cheapest places to live in Luxembourg?
Border areas in the north and south of the country offer rents of €15-22 per square metre. Communes on the outskirts of the West region offer 20-25€/m², which is a substantial saving compared with the 35-50€/m² in Luxembourg City.
