Authored by the expert who managed and guided the team behind the Luxembourg Property Pack
This blog post covers apartment rental yields in Luxembourg City as of March 2026, based on the latest available district-level data and official sources.
We constantly update this blog post so the figures you see here always reflect the most current market conditions in Luxembourg City.
Whether you are weighing Bonnevoie against Kirchberg, or trying to decide between a studio and a one-bedroom, this page gives you a clear, structured picture of what to expect.
And if you're planning to buy a property in Luxembourg City, you may want to download our real estate pack about Luxembourg City.
A quick summary table
| Metric | Value |
|---|---|
| Luxembourg City neighborhood with the best rental yield | Bonnevoie (studio, 5.8% gross) |
| Luxembourg City neighborhoods with the weakest rental yields | Belair and Neudorf (2-bedroom and above) |
| Average gross rental yield across Luxembourg City | ~3.7% |
| Average net rental yield across Luxembourg City | ~2.8% |
| Median purchase price for a Luxembourg City apartment | ~€650,000 |
| Average monthly rent for a Luxembourg City apartment | ~€2,200 |
| Average occupancy rate in Luxembourg City | ~95% |
| Fastest-letting Luxembourg City neighborhood | Bonnevoie (avg. 11 days) |
| Slowest-letting Luxembourg City neighborhood | Belair 3-bedroom (avg. 28 days) |
| Highest occupancy in Luxembourg City | Bonnevoie studio (97%) |
| Best value high-yield segment in Luxembourg City | Studios in Bonnevoie, Gare, and Hollerich |
| Yield spread in Luxembourg City (gross, top vs. bottom) | 5.8% down to 2.7% (about 310 basis points) |
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Luxembourg City neighborhoods and apartment types in 2026, ranked by rental yield
This table ranks the top Luxembourg City neighborhoods and apartment types by gross rental yield.
For each neighborhood and apartment type, the table includes the average purchase price, average monthly rent, gross rental yield, net rental yield, annual fees, average occupancy, average time to rent, main rental demand, main risk, and investment profile.
Finally, please note you'll find much more detailed data in our real estate pack about Luxembourg City.
| # | Neighborhood | Property type | Gross rental yield | Net rental yield | Average purchase price | Average monthly rent | Ownership annual fees | Average occupancy | Average time to rent | Main rental demand | Main risk | Rental Investment Profile |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Bonnevoie | Studio apartment | 5.8% | 4.7% | €332,000 | €1,600 | €3,000 | 97% | 11 days | Young commuters and first-job renters | Small-unit turnover spikes | Top Pick |
| 2 | Gare | Studio apartment | 5.5% | 4.5% | €380,000 | €1,750 | €3,200 | 96% | 12 days | Station-area singles and consultants | Higher churn and wear | Top Pick |
| 3 | Hollerich | Studio apartment | 5.5% | 4.4% | €360,000 | €1,650 | €3,100 | 96% | 12 days | Young urban renters and interns | Micro-unit competition risk | Top Pick |
| 4 | Limpertsberg | Studio apartment | 5.2% | 4.2% | €402,000 | €1,750 | €3,400 | 96% | 13 days | Students and junior professionals | Premium pricing limits upside | Strong Potential |
| 5 | Gasperich | Studio apartment | 4.6% | 3.5% | €433,000 | €1,650 | €3,500 | 95% | 15 days | Cloche d'Or office renters | Heavy new-build competition | Good Potential |
| 6 | Kirchberg | 1-bedroom apartment | 4.0% | 3.2% | €649,000 | €2,150 | €4,200 | 96% | 14 days | EU staff and consultants | Expensive entry pricing | Good Potential |
| 7 | Cessange | 1-bedroom apartment | 4.0% | 3.1% | €560,000 | €1,850 | €3,800 | 96% | 16 days | Couples seeking quieter housing | Thinner resale liquidity | Good Potential |
| 8 | Limpertsberg | 1-bedroom apartment | 3.9% | 3.1% | €650,000 | €2,100 | €4,200 | 96% | 14 days | Academics and young professionals | Yield compression from premium | Good Potential |
| 9 | Merl | 1-bedroom apartment | 3.8% | 3.0% | €649,000 | €2,050 | €4,100 | 95% | 16 days | School staff and professional couples | Family-area rent ceiling | Moderate Appeal |
| 10 | Kirchberg | 2-bedroom apartment | 3.7% | 3.0% | €968,000 | €3,000 | €5,600 | 95% | 16 days | Dual-income EU professional couples | High charges in premium stock | Good Potential |
| 11 | Gasperich | 1-bedroom apartment | 3.7% | 2.9% | €681,000 | €2,100 | €4,300 | 95% | 16 days | Corporate couples near Cloche d'Or | Supply pipeline pressure | Good Potential |
| 12 | Bonnevoie | 1-bedroom apartment | 3.7% | 2.9% | €570,000 | €1,750 | €3,600 | 96% | 13 days | Young couples and commuters | Block-quality dispersion | Good Potential |
| 13 | Neudorf | Studio apartment | 3.6% | 2.7% | €463,000 | €1,400 | €3,300 | 95% | 17 days | Airport and Kirchberg commuters | Narrower resale pool | Moderate Appeal |
| 14 | Limpertsberg | 2-bedroom apartment | 3.6% | 2.8% | €969,000 | €2,900 | €5,700 | 95% | 18 days | Established professional couples | Very high capital outlay | Moderate Appeal |
| 15 | Gare | 1-bedroom apartment | 3.5% | 2.7% | €597,000 | €1,750 | €3,700 | 95% | 14 days | Central commuters and singles | Churn and noise sensitivity | Moderate Appeal |
| 16 | Hollerich | 1-bedroom apartment | 3.5% | 2.7% | €618,000 | €1,800 | €3,900 | 95% | 15 days | Young professionals and sharers | Nearby pipeline supply | Moderate Appeal |
| 17 | Bonnevoie | 2-bedroom apartment | 3.4% | 2.7% | €829,000 | €2,350 | €4,700 | 95% | 15 days | Budget-conscious couples and families | Older-building capex risk | Moderate Appeal |
| 18 | Belair | 1-bedroom apartment | 3.3% | 2.6% | €812,000 | €2,250 | €4,700 | 95% | 18 days | Affluent singles and diplomats | Prestige premium hurts yield | Moderate Appeal |
| 19 | Merl | 3-bedroom apartment | 3.3% | 2.6% | €1,297,000 | €3,600 | €7,200 | 94% | 24 days | International-school family renters | Longer reletting periods | Moderate Appeal |
| 20 | Cessange | 2-bedroom apartment | 3.3% | 2.6% | €861,000 | €2,350 | €4,800 | 95% | 17 days | Small families and car commuters | Car dependence narrows demand | Moderate Appeal |
| 21 | Neudorf | 1-bedroom apartment | 3.2% | 2.5% | €708,000 | €1,900 | €4,200 | 95% | 17 days | Hospital and EU-adjacent staff | High purchase basis | Moderate Appeal |
| 22 | Gasperich | 2-bedroom apartment | 3.2% | 2.5% | €1,015,000 | €2,700 | €5,800 | 95% | 18 days | Dual-income corporate couples | Service-charge burden in new stock | Moderate Appeal |
| 23 | Gare | 2-bedroom apartment | 3.1% | 2.4% | €868,000 | €2,250 | €4,900 | 94% | 18 days | Flat-sharers and central workers | Tenant wear in older blocks | Limited Appeal |
| 24 | Hollerich | 2-bedroom apartment | 3.1% | 2.3% | €899,000 | €2,300 | €5,100 | 94% | 18 days | Sharers and young families | Pricing runs ahead of rent | Limited Appeal |
| 25 | Merl | 2-bedroom apartment | 3.0% | 2.2% | €967,000 | €2,400 | €5,400 | 94% | 20 days | School-linked family couples | Yield drag from ticket size | Limited Appeal |
| 26 | Kirchberg | 3-bedroom apartment | 3.0% | 2.2% | €1,298,000 | €3,200 | €7,000 | 94% | 23 days | EU executive families | Very high entry cost | Limited Appeal |
| 27 | Cessange | 3-bedroom apartment | 2.7% | 2.0% | €1,238,000 | €2,800 | €6,500 | 94% | 24 days | Families seeking quieter homes | Slower leasing velocity | Limited Appeal |
| 28 | Belair | 2-bedroom apartment | 2.7% | 2.0% | €1,329,000 | €3,000 | €7,000 | 94% | 22 days | Affluent couples and diplomats | Prestige premium depresses yield | Limited Appeal |
| 29 | Belair | 3-bedroom apartment | 2.7% | 2.0% | €1,698,000 | €3,800 | €8,200 | 93% | 28 days | Diplomatic families and executives | Large capital tied up | Limited Appeal |
| 30 | Neudorf | 2-bedroom apartment | 2.7% | 2.0% | €1,116,000 | €2,500 | €6,000 | 94% | 21 days | Kirchberg-linked family renters | Premium entry near institutions | Limited Appeal |
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Key insights about apartment rental yields in Luxembourg City
Insights
- In Luxembourg City in 2026, studios consistently outperform larger apartments on yield, with Bonnevoie studios reaching 5.8% gross versus just 2.7% for a Belair three-bedroom. That gap of more than three percentage points is the single biggest lever a beginner investor can pull.
- Bonnevoie is the strongest entry-level neighborhood in Luxembourg City right now, combining a 5.8% gross yield, a 97% occupancy rate, and an average of only 11 days to find a new tenant. That combination is rare in a market where most areas sit closer to 14 to 18 days.
- Gare studios in Luxembourg City rent in roughly 12 days on average, but the churn rate is materially higher than in Bonnevoie. If you want fast re-letting, Gare works well. If you want stable, long-term tenants, Bonnevoie is the safer pick.
- Hollerich in Luxembourg City performs well at the small-unit end (5.5% gross for studios) but the one-bedroom and two-bedroom yields fall to 3.5% and 3.1% respectively. The neighborhood's investment case weakens sharply as you move up in size.
- Limpertsberg in Luxembourg City is expensive, but the student and junior-professional rental base is deep enough to keep studios at 5.2% gross. That makes it one of the few premium neighborhoods in Luxembourg City where small units still justify the ticket price.
- Kirchberg in Luxembourg City offers one of the safest tenant profiles (EU institutions and international staff), but gross yields fall from 4.0% on a one-bedroom to 3.0% on a three-bedroom. The yield cost of moving up one size category in Kirchberg is steep.
- Gasperich (Cloche d'Or area) rents well and has strong demand from corporate tenants, but a large pipeline of new-build apartments means landlords have limited room to push rents higher. The 3.7% gross yield on a one-bedroom reflects that cap on pricing power.
- Belair is clearly a capital-preservation market in Luxembourg City, not an income-maximizing one. Gross yields sit at 3.3% or below across all property sizes, and the three-bedroom takes an average of 28 days to re-let. If yield is the goal, Belair is the wrong place to start.
- Across Luxembourg City in 2026, the gap between gross yield and net yield is consistently around 1.0 to 1.2 percentage points. That means running costs in Luxembourg City are significant and need to be factored in from day one, not treated as a small rounding error.
- Two-bedroom apartments in Luxembourg City often look attractive because the rents are higher in absolute terms, but the net yields are usually lower than one-bedrooms in the same neighborhood. In Kirchberg, for example, a one-bedroom nets 3.2% while a two-bedroom nets 3.0%. The bigger unit ties up more capital for a smaller return.
- Cessange offers a reasonable middle ground in Luxembourg City for first-time investors who want something quieter than Gare or Bonnevoie. The one-bedroom yields 4.0% gross, occupancy is solid at 96%, and tenant demand comes from couples rather than high-churn singles.
- Neudorf benefits from its proximity to Kirchberg institutions, but purchase prices already reflect that spillover demand. The studio yields only 3.6% gross, and the two-bedroom falls to 2.7%. Kirchberg adjacency is already priced in.
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About our methodology
We also believe it is important to show our reasoning. It is one of the ways we make our work solid, transparent, and rigorous, just as you will see in our real estate pack about Luxembourg City.
First, please note that this data is updated regularly, so what you see here reflects the current values as of today.
In order to get reliable data, we applied a strict source filter. We only used authoritative, verifiable sources, not random listings or unsupported figures. More on that point below.
For each Luxembourg City neighborhood and property type, we aggregated the freshest purchase price and monthly rent data available. When possible, we cross-checked multiple sources to confirm the same range.
This allowed us to estimate rental yield before costs. That is the gross yield, based on annual rent versus purchase price.
We then estimated rental yield after costs. That is the net yield, after recurring ownership and operating expenses specific to Luxembourg City apartments.
These expenses vary by neighborhood in Luxembourg City. That is why two districts with similar rents can still produce different net returns.
For example, newer buildings in Kirchberg and Gasperich carry higher service charges, while older blocks in Bonnevoie or Gare may have more maintenance and repair costs. In high-turnover areas like Gare, vacancy and tenant-related costs also tend to be higher.
We also estimated ownership annual fees by combining the main recurring costs linked to each Luxembourg City apartment. This includes items such as property taxes, building service charges where relevant, insurance, and a maintenance allowance.
These estimates were not applied as one flat number across Luxembourg City. They were adjusted by neighborhood and property type to better reflect local ownership conditions in each district.
This table should therefore be read as a structured market estimate, not as an exact guarantee of future performance. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Luxembourg City.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our real estate pack about Luxembourg City, we rely on verifiable sources and a transparent methodology.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's reliable | How we used it |
|---|---|---|
| Observatoire de l'Habitat (Open Data Luxembourg) - apartment sale prices by Luxembourg City district | This is an official Luxembourg government open-data release specifically covering apartment prices at the district level. | We used it as the main price anchor for each Luxembourg City neighborhood. We relied on its district-by-district asking-price structure to separate premium, core, and value areas. |
| Observatoire de l'Habitat (Open Data Luxembourg) - apartment rents by Luxembourg City district | This is the official Luxembourg government open-data release for district-level advertised rents. | We used it as the main rent anchor for each Luxembourg City neighborhood. We used it to make sure rent expectations stayed tied to actual district-level advertised evidence. |
| Ministere du Logement Luxembourg - sale prices by commune | This comes directly from Luxembourg's housing ministry and is based on notarized transaction data, making it harder and more reliable than asking-price data alone. | We used it to cross-check our neighborhood asking-price estimates against real transaction data for Luxembourg-Ville. We used it to keep our final purchase-price estimates grounded in actual market fundamentals. |
| Ministere du Logement Luxembourg - apartment sale-price simulator | This is an official hedonic pricing tool from the Luxembourg housing ministry that adjusts prices based on apartment size, age, and location. | We used it to check whether our typical apartment sizes and price levels were realistic for Luxembourg City. We also used it to make the adjustments between studio, one-bedroom, two-bedroom, and three-bedroom estimates consistent. |
| Ministere du Logement Luxembourg - apartment rent simulator | This is the official hedonic rent tool from the Luxembourg housing ministry, covering rents at the apartment level. | We used it to validate our rent assumptions by size and location. We used it to confirm that the final rent levels were consistent with Luxembourg City advertised market conditions. |
| Observatoire de l'Habitat - Analysis Report 18, Q1 2025 | This is an official analytical market report from the Luxembourg housing ministry and STATEC covering the residential property market. | We used it for national market context, including transaction volumes and the difference between asking prices and transaction prices. We used it to frame Luxembourg City's rental market as a recovering but selective environment for investors. |
| STATEC / Observatoire - Housing in figures, Q4 2024 | This is an official Luxembourg statistical publication from STATEC covering housing price trends and rental market conditions. | We used it to confirm the late-2024 stabilization in Luxembourg City housing prices and the continued rise in advertised apartment rents. We used it to support the view that rental demand remained firm even as capital values were still adjusting. |
| Ville de Luxembourg - the city's 24 districts | This is the official city government description of each Luxembourg City district, covering residential profiles, access, schools, and transport. | We used it to define each Luxembourg City neighborhood using the names and boundaries that people actually use. We also used it to identify each area's residential character and main employer anchors. |
| atHome - apartments for sale in Belair, Luxembourg City | atHome is one of Luxembourg's main residential property portals and is widely used by buyers and real estate professionals alike. | We used it as a live-market check for what buyers are currently seeing in a premium Luxembourg City neighborhood. We used it to validate common apartment sizes and price bands for Belair units. |
| atHome - apartments for rent in Bonnevoie, Luxembourg City | atHome is one of Luxembourg's main residential portals and provides fresh, current listing evidence for rental properties. | We used it to test the rental reality for one of Luxembourg City's highest-demand neighborhoods. We used it to confirm that studios and one-bedrooms are the practical core of the Bonnevoie rental market. |
| IMMOTOP - apartments for rent in Gasperich (Cloche d'Or), Luxembourg City | IMMOTOP is a major Luxembourg portal and is also explicitly referenced by official Luxembourg rent statistics as a data source. | We used it as a live-market check for Gasperich rents and tenant demand near the Cloche d'Or business district. We used it to keep Gasperich pricing and occupancy assumptions close to active market reality. |
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