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Where are the best places to invest in Luxembourg right now? Is Luxembourg City still the top pick, or are areas like Esch-sur-Alzette, Differdange, and Ettelbruck gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Luxembourg and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
1) Strassen is gaining popularity for its suburban charm and rising property values, attracting families seeking more space
Strassen is a top pick for families craving a suburban vibe and more room to breathe.
In recent years, property values in Strassen have surged, with prices hitting €12,264 per square meter in December 2023. Even with a slight dip to €11,015 per square meter in November 2024, Strassen's prices remain higher than nearby areas like Hesperange and Sandweiler, underscoring its appeal.
The shift to remote and hybrid work has fueled the demand for homes in suburbs like Strassen. Families are now on the hunt for larger, more affordable homes outside the city. With a population of 10,249, Strassen is a stable and growing community, making it a magnet for families.
Strassen boasts excellent infrastructure, with easy access to major roads like the A6 freeway and the N6, making commuting a breeze. The town is packed with family-friendly amenities, including schools, crèches, and day-care centers, plus recreational spots like the Bambësch and Strassen forests, which enhance the quality of life here.
These features create a vibrant community atmosphere, making Strassen a desirable place to settle down. The combination of rising property values and a family-oriented environment makes it a hot spot for those seeking suburban bliss.
Sources: Immotop, Just Arrived, The Africa Logistics
2) Dudelange is attracting buyers with its new urban projects and affordable property prices
Dudelange is catching the eye of property buyers with its affordable prices and exciting urban renewal projects.
In 2024, buying a home in Dudelange cost about €7,124 per square meter, which is a bargain compared to the €12,232 per square meter in Luxembourg City. This price gap makes Dudelange a smart choice for those looking to invest without breaking the bank.
Interestingly, property prices in Dudelange have been on a downward trend, dropping from €7,475 per square meter in June 2023 to €7,124 in November 2024. This dip might be due to new residential projects popping up, part of the city's efforts to revamp and attract more buyers.
Experts believe Dudelange is on the brink of growth, thanks to these urban renewal initiatives. While property prices in Luxembourg are generally dipping, Dudelange stands out as a promising area that could see an uptick in interest and value.
For those considering an investment, Dudelange offers a unique mix of current affordability and future potential. The ongoing improvements in the area are making it increasingly appealing to potential buyers.
With its competitive pricing and urban development, Dudelange is becoming a hotspot for savvy investors looking for a good deal and a promising future.
Sources: Global Property Guide, Properstar
We have made this infographic to give you a quick and clear snapshot of the property market in Luxembourg. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Esch-sur-Alzette draws first-time buyers with cheaper homes than Luxembourg City
Esch-sur-Alzette is catching the eye of first-time homebuyers due to its affordable property prices compared to Luxembourg City.
In November 2024, the average price for residential properties in Esch-sur-Alzette was €6,883 per square meter, a drop from the previous year. Meanwhile, Luxembourg City had much steeper prices, with properties going for €8,382 per square meter in August 2024. This price gap makes Esch-sur-Alzette a hotspot for those looking to buy their first home.
The area is becoming a go-to market for first-time buyers, thanks to its relatively lower property prices. The new Frieden government is also on board, focusing on increasing the availability of affordable housing, including apartment buildings and two-family homes.
Esch-sur-Alzette is not just about lower prices; it's also undergoing a major transformation. Old industrial sites are being turned into mixed-use districts, complete with housing, office spaces, schools, and cultural heritage sites. This development is making the area even more appealing to potential buyers.
These changes are enhancing Esch-sur-Alzette's attractiveness, offering a more appealing choice for those seeking affordable housing options. The combination of lower prices and ongoing development is drawing attention from those who might otherwise look to Luxembourg City.
Sources: Just Arrived, Immotop, ArchDaily
4) Remich is gaining interest for its scenic Moselle River location and rising demand for vacation homes
Remich is turning heads with its stunning location along the Moselle River.
In recent years, this charming area has become a hotspot for tourists, with more people flocking to its scenic beauty. In 2023, there was a 9% rise in tourist arrivals compared to 2019, highlighting the growing allure of this picturesque region. Visitors are captivated by the lush vineyards, quaint streets, and the serene river views that Remich offers.
The buzz around vacation properties in Remich is palpable. The number of vacation rental listings is climbing, likely fueled by the 1.4 million tourist arrivals in Luxembourg accommodations in 2023. This trend suggests that people are not just visiting; they are also keen on finding places to stay, which often leads to buying vacation homes. Imagine owning a cozy retreat in a town where the Moselle River is your backyard.
Property prices in Luxembourg are on the rise, and Remich is no exception. The strong tourism industry and favorable economic conditions are likely pushing up property values, making Remich an attractive option for those eyeing vacation properties. The town's charm, combined with its strategic location, makes it a smart investment choice.
For those considering a property purchase, Remich offers a unique blend of tranquility and vibrancy. The town's appeal is not just in its natural beauty but also in its potential for growth. As more tourists discover this gem, the demand for vacation homes is expected to increase, offering promising returns for investors.
Whether you're looking for a peaceful getaway or a savvy investment, Remich's allure is hard to resist. With its picturesque landscapes and growing popularity, it's no wonder that more people are considering making this charming town their home away from home.
Sources: STATEC Report on Luxembourg Tourism, Visit Remich, Delano.lu Article on Luxembourg Tourism
We believe this video highlights Remich's scenic beauty along the Moselle River and community events, reinforcing its appeal for vacation property buyers.
5) Belair in Luxembourg City is popular for its high rental yields and closeness to the city center
Belair is a top choice for property buyers in Luxembourg City because of its high rental yields and prime location.
In 2024, Belair's average gross rental yield was 2.67%, which stands out compared to the rest of Luxembourg City. This means there's a strong potential for rental income, making it a magnet for investors.
What makes Belair even more appealing is its proximity to the city center. It's close to major business districts, parks, and schools, offering convenience and a high quality of life for residents.
In early 2023, the rental market in Luxembourg City, including Belair, was buzzing, with over 55% of total apartment rental ads coming from this area. This high demand underscores Belair's attractiveness.
Living in Belair means enjoying the perks of city life without the hustle and bustle. Its strategic location not only boosts rental potential but also ensures a comfortable lifestyle.
For those looking to invest or settle down, Belair offers a unique blend of investment opportunity and lifestyle benefits. It's a neighborhood that promises both growth and comfort.
Sources: Global Property Guide, Immotop.lu, Global Property Guide
From this video, we realize that Belair's high-quality construction standards, demonstrated in the Patrizia Residential Building, make it a premium real estate location.
6) Kirchberg is thriving with modern developments and high demand from professionals in European institutions
Kirchberg is a hot market thanks to its modern developments and strong demand from professionals working in European institutions.
With over 14,000 residents from across the EU, Kirchberg is a magnet for professionals due to its proximity to major European institutions like the European Court of Justice and the European Investment Bank. This makes it a vibrant and diverse community.
The area boasts significant infrastructure developments, such as the ‘Porte de l'Europe’ and the ‘Place de l'Europe’, which enhance its appeal. These improvements, along with ongoing construction projects, make Kirchberg an attractive place for both living and investment.
Property prices have been on the rise, reflecting the strong demand and the area's status as a real estate hotspot. Even with a slight dip in 2023, the market remains robust, showing resilience and continued interest from buyers.
Rental yields might be low, but the demand for housing is undeniable. In 2023, rents saw a significant increase, driven by professionals working in nearby European institutions. This makes Kirchberg a preferred location for expatriates and international buyers.
For those considering a move, Kirchberg offers a unique blend of modern living and professional opportunities, making it a top choice for many. The district's ongoing development and strategic location ensure it remains a prime investment area.
Sources: Luxembourg, Home of European Institutions, Luxembourg's Integrated National Energy and Climate Plan, Luxembourg Residential Real Estate Market Analysis 2024
7) Mamer is gaining interest for its expanding expat community and increasing rental demand
Mamer is catching the eye of investors thanks to its vibrant expatriate community and booming rental market.
In 2023, Mamer's population hit 7,942, with nearly half being foreigners from over 60 countries. This diverse mix is a magnet for those looking to invest in a lively, international setting. The town's appeal is further boosted by its 95.5% average physical occupancy rate in April 2024, indicating a strong demand for rental properties.
With such high occupancy, rental prices are likely on the rise, a trend often seen in areas with a growing expatriate presence. Investors are drawn to these markets where demand outstrips supply, offering the potential for higher rental returns. Mamer's infrastructure, including the A6 motorway, makes it a convenient spot for those commuting to Luxembourg City.
Families find Mamer particularly appealing due to its international schools and amenities, catering to the needs of expatriates. This makes it not just a place to live but a strategic investment opportunity. The town's connectivity and facilities are key factors in its growing popularity among investors.
For those considering property investment, Mamer offers a unique blend of community and convenience. Its strategic location and diverse population make it a hotspot for rental demand, promising potential growth in property values. The town's infrastructure and amenities are tailored to support its international residents, enhancing its attractiveness.
Sources: Mamer - Wikipedia, MAA REPORTS FIRST QUARTER 2024 RESULTS, Choosing where to live in Luxembourg-City
8) Wiltz is gaining attention for its affordable homes and growth potential
Wiltz is quickly becoming a hotspot for affordable housing and future growth in Luxembourg.
With property prices soaring in Luxembourg, Wiltz stands out as a more budget-friendly option for potential homeowners. This makes it an attractive choice for those looking to invest in property without breaking the bank. The town's appeal is growing as people seek alternatives to the pricier regions.
Wiltz's population has seen a remarkable increase, rising to 19,530 in 2024 from just 8,997 in 1981. This surge in residents signals a booming demand for housing and services, setting the stage for further development. As more people flock to Wiltz, the need for new homes and infrastructure is only going to rise.
Exciting projects like the “Wunne mat der Wooltz” initiative are in the pipeline, aiming to deliver affordable housing solutions to the area. These developments underscore Wiltz's potential to become a major player in Luxembourg's housing market. The government's role in offering incentives and tax benefits is also crucial, making Wiltz even more appealing to both residents and investors.
For those considering a move or investment, Wiltz offers a unique opportunity. The combination of large-scale housing projects and government support makes it a promising market. As the town continues to grow, so does its potential for future prosperity.
Wiltz is not just about affordable housing; it's about being part of a community on the rise. With its strategic location and ongoing developments, Wiltz is poised for significant growth in the coming years.
Sources: Delano Article, Population Statistics, Global Property Guide, IMF Report
We made this infographic to show you how property prices in Luxembourg compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Hesperange is gaining popularity for its urban-rural balance and steadily rising property prices
Hesperange is becoming a favorite for its balance of urban and rural living, with property prices steadily climbing.
One big reason is its proximity to Luxembourg City. People want the perks of city life without the chaos, and Hesperange offers just that. This has sparked a high demand for housing as folks flock to enjoy this perfect mix.
Over the last thirty years, the population of Hesperange and Alzingen has nearly doubled. This boom shows that more people are choosing to settle here, likely drawn by the appealing lifestyle and amenities.
Hesperange's charm lies in its ability to offer both modern conveniences and a peaceful environment. It's a place where you can enjoy a quiet walk in nature and still be close to the city buzz.
With its growing popularity, property prices are on the rise. This trend is a clear indicator of the area's increasing desirability among homebuyers.
Sources: Immotop, Lux Today, Luxembourg Public
10) Bertrange is gaining attention for its residential and commercial developments, driving property value growth
Bertrange is buzzing with interest due to its unique blend of residential and commercial developments.
In recent years, property values in Bertrange have surged, making it a sought-after spot for both homebuyers and investors. The area is seeing a wave of new projects like "The Garden" and "Pourpelt," which offer modern, high-quality living spaces that are drawing in potential buyers. Even with a slight dip in 2024, the demand remains strong, indicating that people are betting on the area's future growth.
One of Bertrange's biggest draws is its strategic location near major roads and amenities. It's close to the Belle Etoile shopping center, which adds a layer of convenience for residents. The local government is also planning more developments, which means the area is only going to get more attractive.
For those considering an investment, Bertrange offers a promising opportunity. The ongoing development projects are not just about new buildings; they are about creating a vibrant community that promises future value appreciation. This makes Bertrange a prime location for anyone looking to invest in property.
Insider knowledge suggests that the local government's plans for further development are likely to enhance the area's appeal even more. This means that property values could continue to rise, making it a smart choice for investors.
With its mix of residential and commercial spaces, Bertrange is not just a place to live; it's a place to thrive. The combination of modern amenities and strategic location makes it a hotspot for those looking to invest in a growing community.
Sources: Just Arrived, Immotop, Wikipedia
11) Differdange is seeing rapid property value growth with new infrastructure enhancing connectivity
Differdange is seeing a rapid rise in property values thanks to new infrastructure projects enhancing its connectivity.
Luxembourg is pouring money into infrastructure, like better public transport and road networks, making it easier to get to and from Differdange. This increased accessibility boosts the town's appeal, which naturally drives up property values. Even if Differdange isn't specifically mentioned in every announcement, the ripple effect of Luxembourg's overall infrastructure investment is undeniable.
Real estate agencies and studies highlight that Luxembourg's strong economy and favorable tax environment make it a magnet for international buyers. This influx of interest is pushing property demand and prices higher, and Differdange is no exception. The town benefits from the broader trends affecting the entire country.
In Luxembourg, property prices are expected to rise by 3% to 7% in 2025, driven by high demand and limited supply. These trends likely mirror what's happening in Differdange, even if specific data isn't always available. The town's growing connectivity and appeal are key factors in this upward trajectory.
For potential buyers, Differdange offers a unique opportunity. The town's enhanced connectivity and rising property values make it an attractive option for investment. As Luxembourg continues to develop its infrastructure, Differdange stands to gain even more.
With its strategic location and improved accessibility, Differdange is becoming a sought-after destination. Investors and homebuyers are taking notice, drawn by the town's potential for growth and appreciation.
Sources: HelloHere, PwC Luxembourg
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12) Junglinster is gaining attention for its scenic beauty and rising property values as people seek quieter living
Junglinster is catching the eye of those who crave scenic beauty and promising property value.
People are flocking to Junglinster for its lush landscapes and outdoor activities like hiking and cycling. This town is perfect for nature lovers who want to escape the city chaos. The demand for homes in quieter areas like Junglinster is on the rise as more folks seek a peaceful lifestyle.
Junglinster's real estate market is thriving, offering competitive prices that attract both families and investors. The town's charm and potential for property appreciation make it a hot spot for those looking to invest in a serene setting.
Recent infrastructure upgrades, including improved public transport and new bike paths, have made Junglinster more commuter-friendly. These enhancements, along with plans for climate-neutral projects, boost the area's appeal and quality of life.
Junglinster is not just about tranquility; it's about smart living. The town's development plans focus on sustainability, making it a forward-thinking choice for property buyers. As more people seek quieter living, Junglinster stands out for its blend of nature and modern amenities.
With its scenic surroundings and potential for property appreciation, Junglinster is on the radar for those looking to invest in a peaceful yet promising location. The town's ongoing improvements and strategic growth plans make it a compelling choice for future homeowners.
Sources: Immotop.lu, Jonglënster Electoral Program, Nextimmo.lu
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.