Luxembourg Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

9.1x

Ratio of property prices to annual income

Rental Yield

3.2%

Average annual rental return

Price to Rent

31.1

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Luxembourg Real Estate trends and investment implications

Market Overview

Luxembourg's property market is currently characterized by high prices relative to income and renting, with rental yields offering limited attraction compared to potential financing costs. The market appears to be at a peak, suggesting caution for new buyers but offering potential for long-term appreciation if economic fundamentals remain strong.

Key Findings

Data-driven insights

•Price to Income Ratio at 9.1 indicates a relatively unaffordable market for locals.
•Rental Yield stands at 3.2%, which is low compared to borrowing costs, reducing the attractiveness for yield-focused investors.
•Price to Rent Ratio of 31.1 suggests buying is significantly less economically rational than renting in the short-term.
•Historical data suggests significant price appreciation over the decades, indicating strong long-term growth potential.

Market Trends

Historical patterns

•Consistent long-term price appreciation with occasional corrections tied to broader economic cycles.
•Increasing price to income ratios over the past decades, suggesting growing affordability issues.
•Stable but low rental yields in recent years, potentially due to high property prices.

For Investors

Actionable takeaways

•Consider waiting for potential market corrections before entering, or target properties in undervalued segments.
•Focus on properties with potential for capital appreciation rather than immediate rental yield.
•Evaluate properties in high-demand areas that can weather economic downturns to mitigate risks.
•Monitor interest rate trends closely as rising rates could further suppress rental yield attractiveness.

Market Context

Luxembourg's property market is mature and tightly linked to its strong financial sector, offering both stability and challenges due to high demand and limited supply. Investors should balance short-term affordability issues with long-term growth prospects.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.