Market overview
Prime yield
2,60%
(city)
(city)
Population
634,700 inh.
1st Jan 2021
1st Jan 2021
Unemployment
2021: 5.7%
Forecast 2022: 4.7%
Forecast 2022: 4.7%
2021: 6.0 %
Forecast 2022: 2.3%
Forecast 2023: 3.7%
GDP Growth
Prime sales price
€ 20,750 / sq.m.
(2021)
(2021)
Source: JLL Luxembourg
Prime rent
€ 45 per sq.m./month
(2021)
(2021)
Population
128,514
31 Dec 2021
31 Dec 2021
Luxembourg's housing sector is experiencing a sharp cool down due to high interests rates, with the number of units being built and sold tumbling, while renting is becoming more popular and more expensive.
LUXEMBoURG city
SUMMARY DASHBOARD
GDP and disposable income
In 2020 the GDP per capita amounted to € 78,600 per capita in Luxembourg. This represents more than twice the purchasing power in the Eurozone, € 31,500. The Grand Duchy of Luxemburg's GDP per capita is one of the highest in the world.
(Un)employment
In 2021 the unemployment rate in Luxembourg averaged 5.2% with a forecast 4.7% in 2022. Luxembourg labour market is focused on financial sector, causing the proportion of foreign workers to increase from 3% in 1961 to 42% in 2016
Unemployment rate in 2019 (% of labour force aged 15-64 years)
Unemployment rate in 2019 (% of labour force aged 15-64 years)
Population
With 634,738 inhabitants on 1st January 2021, of which 52.8% are Luxembourgish nationals, Luxembourg is growing steadily, at a pace of approx. 2% per year since the beginning of the century. Approximately 200.000 people commute to Grand Duchy every day.
According to STATEC, the population has increased by more than 300,000 people over the last 30 years (in 1988, the total population was 372,000).
This increase is mainly due to immigration. The proportion of foreigners in the total population was 47.2% as of 1st January 2021. Portugal comes first with 33.5%, followed by France with 15.9% and Italy with 7.62%, then Belgium with 7.01%, Germany with 4.56%, Great Britain with 2.06% and the Netherlands with 1.49%
According to STATEC, the population has increased by more than 300,000 people over the last 30 years (in 1988, the total population was 372,000).
This increase is mainly due to immigration. The proportion of foreigners in the total population was 47.2% as of 1st January 2021. Portugal comes first with 33.5%, followed by France with 15.9% and Italy with 7.62%, then Belgium with 7.01%, Germany with 4.56%, Great Britain with 2.06% and the Netherlands with 1.49%
Housing market
Housing stock.
In 2021 there were a total of 269,900 households. Seven out of ten residents currently live in a household that owns its principal place of residence. Whilst the number of new dwellings delivered each year grows, the growth is still not large enough to accommodate all new households, thus putting upward pressure on prices. The current housing stock in the Grand Duchy counts 49.7% single-family houses and 50.3% apartments.
In 2021 there were a total of 269,900 households. Seven out of ten residents currently live in a household that owns its principal place of residence. Whilst the number of new dwellings delivered each year grows, the growth is still not large enough to accommodate all new households, thus putting upward pressure on prices. The current housing stock in the Grand Duchy counts 49.7% single-family houses and 50.3% apartments.
Housing stock - 25% was built after 2000
In spite of the recent increase in construction of new units, the need for housing still exceeds the number of new units delivered.The COVID-19 will also have an impact on housing preferences:a terrace or a garden are now significantly more popular than before
Pricing and yield
Prices are rising rapidly as a result of the lack of constructible land. House price growth in Luxembourg is the 6th highest in Europe
Evolution of registered prices per sq.m. in a selection of municipalities (€ per sq.m.)
Evolution of registered prices per sq.m. in a selection of municipalities (€ per sq.m.)
The average monthly rent is €1,403/month, with €178 in monthly expenses added to the rent, bringing the total to around €1,581/month.
Source :CBRE
Source :CBRE
Current prime yields are around 2,6% and apply mainly to the City of Luxembourg. In other locations a prime yield of 3.0% applies.Institutional investment remains limited in Luxembourg