Hit-parade of the most expensive municipalities in Luxembourg
Article updated in 2021
Owner-occupancy has been the historical norm in Luxembourg. However, the real estate market soar has made accessing property a lot harder in certain municipalities or neighbourhoods of the capital. Lets discover the hit-parade of the most expensive areas to live in.
Based on its GDP per capita and purchasing power, Luxembourg was designated the second richest country in the world by the Global Finance magazine last February. With a 8,5% average annual increase since 2010, real estate prices reflect this wealth by continuously hitting new records. However, huge gaps between different municipalities or even between Luxembourg city’s neighbourhoods are hidden behind these averages.
Hit-parade of the most expensive and inexpensive municipalities for existing appartments
1. Luxembourg City: 9 477 €/m2
2. Bertrange: 9 467 €/m2
3. Strassen: 9 101 €/m2
4. Hesperange: 8 103 €/m2
5. Leudelange: 7 636 €/m2
…
50. Tandel: 3 783 €/m2
51. Parc Hosingen: 3 381 €/m2
52. Clervaux: 3 764 €/m2
Average registered sale price per sqm for existing apartments, in municipalities where at least 10 transactions were recorded (Observatoire de l’Habitat, 2020)
Luxembourg City stands out as the most expensive municipality in the country. Growing strongly, the average price per square meter has increased by 47% since 2016. An observation that should be put in perspective as a very strong disparity exists between neighbourhoods, details follow.
At near identical prices, Bertrange comes second. Well served by the road and railway network, the municipality takes advantage of its proximity to the capital. Its appeal is strengthened by its abundant offer in commercial and educational infrastructure, including the European School of Luxembourg II.
At 9 101€/m2, with a 51% increase since 2016, Strassen closes the top 3 of the most expensive municipalities.
At half the price compared to the top of the ranking, the least expensive municipalities in 2020 are Tandel, Parc Hosingen and Clervaux. A gap that has been widening, since their increase since 2017 has been well below the national averages.
What about the off-plan market?
For a new apartment, a premium of 500 to 1 500€ per square meter needs to be added. Here, the top 3 of the most expensive municipalities is slightly different.
- Luxembourg City: 11 035 €/m2
- Bertrange: 10 727 €/m2
- Hesperange : 9 658 €/m2
Average registered sale price per sqm for new apartments, in municipalities where at least 10 transactions were recorded (Observatoire de l’Habitat, 2020)
Zoom on the capital’s neighbourhoods
A very strong disparity exists between neighbourhoods within Luxembourg City. An existing apartment will be advertised on average at 8 506€/m2 in Cents, whereas Limpertsberg will display 12 467€/m2, representing a gap of 46%!
The appeal for a neighbourhood is mostly defined by its geographical location and its offer in infrastructure. Limperstberg takes advantage of its ideal location, between Ville-Haute and Kirchberg, with many local schools, the Vauban French School (which will move to Gasperich in September 2017) and a university campus. The prices of the neighbourhood are also driven by its mix of high-demand mansions and modern luxury constructions.
Second in terms of average advertised price, the demand for Kirchberg is continuously growing. Many multinational companies (audit firms, law firms, banks…) and European institutions (European Court of Auditors, European Parliament, European Investment Bank) are located in this high employment neighbourhood. There is a high demand for real estate in the area, especially from high purchasing power buyers looking to live close to their workplace.
With an average advertised price of 8 399€/m2, Belair arrives in third place of the most expensive neighbourhoods, thanks to its easy access to Ville-Haute and its great living conditions.
What makes a municipality expensive or not?
The proximity to the capital seems like the main factor that impacts local real estate prices. In 2009, the difference between an apartment in Luxembourg city compared to the country’s average was 14%. Today, the gap has widened to 46%. The increasing problems related to traffic is the main reason that reinforced the trend of living close to your workplace. Recently ranks in the top 3 most congested country in the European Union by INRIX, this trend will likely worsen as the country is going through a strong demographic growth (+12% since 2010) and where half the active population are cross-border workers.
Quality of life is also an important factor that impacts property prices. The easy access to nurseries or schools, the presence of shops and retail businesses and the offer in municipal infrastructure have an important role in a buyer’s final decision.
Should you want to evaluate your home or a property? Our online valuation tool takes in account the latest registered transactions in the municipality, as well as the positive and negative factors that impact the value of a home, to give a precise valuation of a property.
