u/JottGleichGott began the thread linking to a studio in criminal, deeming the price 'criminal' and writing "Rental prices in Luxembourg are really getting out of hand...".
The apartment that drew the ire of the Redditor is described as a 'magnificent furnished studio' of 33 square metres in Limpertsberg, with the official description stating the studio has both a living and dining area, alongside a kitchen corner and a bathroom. The studio also has a 'spacious cellar' and, given its ground floor placing, has excess to a private garden and terrace, making the studio 'unique', according to athome.lu
u/JottGleichGott quipped that the only thing making the studio unique is its cost, namely €1,800 per month or €55 per square metre. For those wanting indoor parking, they have to shell out a further €150 a month. Finally, bills mean the cost of the studio will surely go over €2,000.
The question remains, is this expensive for Luxembourg or merely the average price? According to the Luxembourg Institute of Socio-economic Research, the average rent for an apartment in Luxembourg this year is approximately €26.03 per square metre. This makes the average rent €1,611 per month - broken down by area, this is €1,819 in the Luxembourg canton and €1,067 in northern Luxembourg.
Given these calculations, the above studio's €55 per square metre is almost double the average rental price for an apartment in the capital, which costs €30.71 per square metre, according to LISER.
However, Limpertsberg as a neighbourhood is not indicative of Luxembourg City prices as a whole. The neighbourhood certainly has a reputation as being an expensive area of town, confirmed by Athome, which revealed that Limpertsberg was the third-most expensive area in Luxembourg City in 2018. With rental prices averaging at €2,087 for a two-bedroom flat, the neighbourhood is certainly not the most affordable. However, Athome calculated the average studio price for Limpertsberg in 2017 as costing €1,049, making the above studio much more expensive than the area's average.
Obviously, the above figures are only averages and real estate prices always depend on supply and demand. In an economy where people are prepared to pay these kinds of prices, why would landlords not try and get as much money as possible?
U/Andreif alluded to the problem of supply and demand in the discussion, writing: "These prices exist because people actually rent them out. Go 10-15minutes further away from the centre and prices are 40-50% lower." Granted, the fact that the building is modern, the studio is furnished (although rather minimally, at that), and has access to a garden will be factors increasin the price. Nevertheless, Reddit users denounced the listing as excessive, but admitted eventually someone will be stupid enough to pay for it.
The top-rated comment, by u/BarryFairbrother, argued the high price may have dissuaded most prospective tenants: "Not surprising it's been available since August."
