Luxembourg City has cemented its position as Europe's most expensive rental market, with average prices soaring to €43.4 per square metre in 2024, far surpassing Paris and Dublin.
Luxembourg City has been ranked the most expensive place to rent in Europe, with average prices reaching €43.4 per square metre in 2024, according to Deloitte's latest Property Index. The annual survey of 77 cities across Europe shows the Grand Duchy's capital outpacing even Paris (€32/sqm) and Dublin (€31.7/sqm).
The report also named Luxembourg the most expensive country in Europe to buy a new home.
The gulf between Luxembourg and its neighbours underlines the severity of affordability pressures: Brussels, for example, recorded rents of around €15/sqm while Berlin came in at €18.4/sqm, less than half the Luxembourg City rate.
The report shows that Luxembourg City rents rose by 16% between 2023 and 2024, fuelled by strong demand for centrally located housing and a tight supply of new units. The price for furnished rooms went up by 2.2% year-over-year, while sitting tenants faced average rent increases of 1.7%.
Analysts point to a familiar combination of factors: limited construction activity, cautious investors, and a strong inflow of international workers sustaining demand. However, the rental sector has grown more competitive across all of Europe as home ownership becomes harder to access due to high mortgage rates and financing hurdles.
