Renting a house in the capital area? Price is 40% more expensive than in the rest of the country

The value of apartment rents continues to rise a little throughout the Grand Duchy, reaching higher levels than inflation in new contracts. However, when looking at the values ​​practiced in different areas of the country, the disparity is significant. In the canton of Luxembourg, the municipalities of Luxembourg City, Strassen and Bertrange, which concentrate a large part of the rental market, not only have the most expensive rents, but they are, on average, almost 40% higher than the average national, refer to the most recent housing figures compiled by the Housing Observatory and Statec.

“The housing rental market is strongly influenced by the proximity to the capital. In certain communes on the outskirts of Luxembourg City, such as Mamer, Leudelange, Hesperange, Sandweiler, Walferdange and Steinsel, tenants have to pay 15% to 30% more than the national average income, while in the “second ring” communes , like Roeser, Bettembourg, Kehlen and Mersch, incomes are only slightly higher than the national average, between 6% and 15%”, details the analysis published this Wednesday.

Cheaper southwest and north

The data, which compare the rent values ​​of a representative sample of apartments taken from the Statec survey for the period from 2017 to 2023, reveal, on the other hand, that the southwest and north areas of the country have rent values ​​that are closer the national average or even lower, in some cases.

According to data worked by the organizations, in most municipalities in the Minette region, in the southwest, incomes tend to be close to the national average, while in the north they stand out for having levels lower than the country’s average. “In Wiltz and Troisvierges, for example, rents are, on average, 20% lower”, says the analysis, which recalls that only around 10% of apartments for rent are located in the north.

Incomes rose above inflation

In the third quarter of 2023, the average value of announced rents in the country increased again to +3.9% in that quarter. In the annual comparison, between the fourth quarter of 2022 and the fourth quarter of 2023, the increase was identical: +3.9%. A value that is thus higher than the inflation recorded in the same period, of 3.2%

However, these are rent values ​​charged by landlords for new lease contracts. The increase in rents during the rental period (for tenants who do not change accommodation) was well below the rate of inflation. According to Statec the increase was +1.5% in the same period.

The analysis published this Wednesday shows that around a third of the surveyed households signed the rental contract less than two years ago and that their income is on average 16% higher than that of rental contracts signed more than two years ago.

This asymmetry arises from the fact that rents during the term of the contracts are “rarely adapted”. Furthermore, it also results from the difference between the average value of average rents published in real estate advertisements for new lease contracts and the value of rents in force during the lease, for contracts in force.

The analysis also points out that apartments built more than 20 years ago represent around 60% of half of the rental market and have an average rent 16% lower than that of more recent properties.