Market Insights Luxembourg

The Engel & Völkers network has an immense amount of market knowledge to offer! We are excited to provide you with interesting facts and figures about the important real estate market in the Grand Duchy.

"Luxembourg’s important multicultural demographics are due to an exceptionally high quality of life, a very strong economy and the geographic proximity to Belgium, France and Germany, says Philipp Niemann, Co-Managing Director at Engel & Völkers Luxembourg. “A high percentage of inhabitants prefer to buy a property rather than renting. According to the Eurostat report, 86.1 percent of Luxembourg nationals aged 20 to 64 live in properties they own. Ownership was highest among the 55-64 year age group, where 9 out of 10 nationals owned their own homes. In terms of foreign national home ownership, Luxembourg is well above the EU average (30.1 percent), with 56.6 percent of foreign nationals living in privately own real estate."

What are the various buyer groups?

• 47 percent of the country’s 626,000 inhabitants do not have Luxembourg nationality
• In Luxembourg City, the number is even higher, with 71 percent of the 122,000 inhabitants being non-citizens
• Most international buyers come from neighbouring countries: Belgium, France, and Germany
• The financial industry in particular tends to hire qualified professionals from abroad, leading to an affluent and demanding clientele
• Young professionals and their families choose Luxembourg as their main residence due to the country’s economic stability, security and international mindset

Which are the most sought-after neighbourhoods in Luxembourg?

Limpertsberg 

The capital’s most expensive and sought-after neighbourhood with mansions, beautiful townhouses and modern buildings is Limpertsberg. It is the preferred address of established families who have lived here for generations. Most residents are Luxembourgish or French. Limpertsberg is evolving into a vibrant blend of historic tradition and hip chic. 

Belair

The neighbourhood known as Belair boasts a mix of splendid townhouses, some of which date back to the "Belle Epoque" era, and also more modern properties. Despite its multicultural atmosphere, Belair nevertheless retains a very "Luxembourgish" flair, appealing to younger people, couples, families and young professionals.

Kirchberg

Kirchberg is a small and traditional neighbourhood, yet is also undergoing rapid development and regeneration. Due to its central location in the banking district and European Quarter, and its proximity to the airport, it is very popular. First and foremost, it is bankers, business people and European civil servants who are drawn to living in this district.

Are there any particular trends and developments on the market?

• Many people are now working from home and will probably continue to do so to some extent in the future. An extra room or space for a home office is therefore often an important criteria in a new property. This was not the case a year ago.

• Buyers are focusing more on outdoor space in the form of a garden and/or terrace.

• People are beginning to look for properties a little further away from Luxembourg City, as this provides more value for money in terms of living space and plot size.