• MMC

The Grand Duchy ranks among the most dynamic and expensive rental markets in Europe. According to the Observatoire de l’Habitat, the average rent for apartments listed in Luxembourg City was around €34/m² in September 2025, equivalent to roughly €1,700 to €2,000 per month for a 50 m² unit. Over the past year, the increase has been moderate (+1.8% according to STATEC), but the market remains highly competitive.

However, these averages do not always reflect the reality experienced by international employees. Expatriates generally seek high-quality, well-located housing with modern amenities. In this segment, rents often exceed statistical averages, reaching €2,500 to €3,000 for a two- or three-room apartment in Luxembourg City — and even more for family homes.

A Market of Contrasts

• Apartments: Slight decrease in advertised rents (–2.2% year-on-year), though demand remains strong.

• Houses: Significant increase (+14% year-on-year), reflecting a small and highly selective market.

• Furnished rooms: Moderate growth (+1.7%), offering a short-term solution for young professionals or those in transition, particularly unaccompanied IT specialists.

The market is also defined by limited supply: the number of house listings has dropped by 25% in one year, while apartment listings have increased by 7%.

Cross-Border Options: Attractive but Constrained

Neighboring markets offer more affordable rents — around €12–15/m² in Arlon (Belgium), €10–12/m² in Trier (Germany), and €11–13/m² in Thionville (France). These alternatives can broaden the range of choices but are not always suitable for inbound employees:

• For non-EU assignees, living outside Luxembourg involves additional residence and work permit requirements, though cross-border work permits do exist.

• Daily commuting times (often exceeding one hour round trip) can impact work-life balance.

Recommendations for HR Teams and Employees

• Plan ahead: Begin the housing search as soon as the employment contract is signed, especially for small apartments or family units, which are in high demand depending on the season.

• Prepare a strong rental file: Include translated documents and appropriate guarantees — speed is essential, and the net salary should ideally cover at least 2.5 times the rent amount.

• Target nearby suburbs: Areas such as Strassen, Bertrange, Mamer, and Esch-sur-Alzette offer slightly lower rents while remaining close to major employment hubs.

• Stay flexible: Starting with temporary or furnished housing can ease the relocation process, though note that in some municipalities, registration with a temporary address may not be permitted.