Luxembourg real estate market — prices, rental yield and trend

• Average price: $8,644 / m²
• Gross rental yield: 5.18%
• 12-month price change (USD): -5.7%
• Net rental yield: 5.07%
• Transaction cost: 9%
• Price basis: national average

Residential property in Luxembourg averages $8,644 per square metre — -5.7% in dollar terms over twelve months, so a dollar buyer pays less than a year ago. That makes it the 21st most expensive of the 264 markets in the set.

What a buyer pays in Luxembourg

The $8,644 figure is a national average across all residential property types, which flattens a wide spread — the capital typically runs far above it and small towns far below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 9% of the price here. On a 100 m² apartment at the average price that is roughly $77,792 on top of the $864,361 purchase price. That is close to the 9.6% median across the set. Of that, the transfer tax alone is 7–10% depending on the buyer and the property; the rest is notary, registration and agency fees.

What it earns

A square metre lets for about $37.3 a month. Against a purchase price of $8,644 per square metre that is 5.2% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 135th of 311 markets by gross yield. Rental income is taxed at 2.2–23.3% — the rate is not a single number here. That is the difference between 4% and 5.1% net on the same property. The 5.1% net figure we publish uses 2.2%. On the way out there is a third tax: a non-resident seller pays 21–42% on the gain, depending on how long the property was held and who is selling.

How the tax works. Net rental income (after itemised expenses, or a 35% standard deduction capped at EUR 2,700 for qualifying older buildings) is taxed at progressive income-tax rates (0-42% for class 1) plus solidarity surcharge and 1.4% long-term care contribution. Global Property Guide's examples give effective rates of 2.2% at EUR 18,000 gross a year and 23.3% at EUR 72,000. Source: Global Property Guide Luxembourg taxes and costs (last update Sep 2026).

How this figure is built

The price figure for Luxembourg is built from recorded transaction prices. It was last refreshed on 2026-10-17. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.

Sources: Observatoire de l'Habitat / STATEC Logement en chiffres n°20 [https://gouvernement.lu/dam-assets/images-documents/actualites/2026/09-septembre/24-logement-en-chiffres-n20/logement-en-chiffre-20.pdf]; press release [https://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2026/09-septembre/24-logement-en-chiffres-n20.html]; Loyers annoncés en 2025 [https://gouvernement.lu/dam-assets/images-documents/actualites/2026/09-septembre/30-observatoire-habitat/rapport-loyers-annoncs-en-2025.pdf]; FX ECB 2026-10-15; GPG taxes and costs [https://www.globalpropertyguide.com/europe/luxembourg/taxes-and-costs]. Snapshot: 2026-10-17.