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May 31, 2017

Moderate rental yields on residential property in Luxembourg


Last Updated: May. 31, 2017
LUXEMBOURG* - Apartments COST () YIELD (p.a.) PRICE/SQ.M. ()
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Studio 208,250 891 5.13% 5,807 26.20
1-BR 310,495 1,180 4.56% 5,246 19.90
2-BR 417,143 1,523 4.38% 4,790 17.11
3-BR 533,754 1,955 4.40% 4,605 16.40
4-BR 724,383 2,568 4.25% 4,548 16.21
LUXEMBOURG* - Houses
2-BR 417,534 1,327 3.81% 3,798 12.73
3-BR 562,140 1,963 4.19% 4,001 13.86
4-BR 686,420 2,465 4.31% 3,952 13.90
5-BR 817,332 3,103 4.56% 3,387 13.86
6-BR 1,030,825 3,506 4.08% 3,594 12.65
LUXEMBOURG City - Apartments
Belair n.a. 1,710 n.a. 7,869 n.a.
Centre-ville n.a. 1,669 n.a. 7,321 n.a.
Kirchberg n.a. 1,861 n.a. 8,117 n.a.
Limpertsberg n.a. 1,797 n.a. 8,619 n.a.
Source: athome.lu Definitions: Data FAQ See also: Update Schedule
*Prices are for the whole country of Luxembourg

In Luxembourg, the gross rental yields on apartments - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - range from 4.25% to 5.15%.

We have given you rental yields for Luxembourg as a whole, because unfortunately we weren´t able to gather data for the city centre (the number of rental offers that we found was too small).

Our research shows that rental yields are somewhat higher on smaller apartments. Yields on the very smallest apartments are 5.15%, which is reasonable for such a prosperous country. But then smaller apartments tend to need more maintenance, so a higher yield is justified.

Rental yields on houses are lower, ranging from 3.8% to 4.5%. For houses there is little relationship between size and rental return.

Prices per square metre range for apartments in the city centre itself range from around 7,900 to 8,900 per square metre (sq. m.).

Prices for apartments further out can be as low as 4,500 per sq. m. Prices in the Grand Duchy for houses range from around 3,600 to 4,000 per sq.m..

Round trip transaction costs are high in Luxembourg, by European standards. See our Property transaction costs for Luxembourg and Property transaction costs in Luxembourg, compared to the rest of Europe.






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