© Domingos Oliveira/ RTL Luxembourg
The Luxembourg Institute of Socio-Economic Research (LISER) has published a new comparison of housing prices in Luxembourg and in its neighbouring border regions, and the findings are striking.
Every day, tens of thousands of cross-border workers face long commutes and traffic jams to reach Luxembourg. While high salaries are often cited as the main incentive, they are only part of the story.
The cost of living certainly plays a role, but no reason plays a larger role than housing prices, which makes up the largest expense for many households in the Grand Duchy.
Apartments: Luxembourg far ahead of border regions in price
LISER recently conducted a price comparison between flats and houses located in Luxembourg and those located on its borders. The findings are clear: "The advertised prices per square metre are on average almost three times higher in Luxembourg than in neighbouring countries", the study reads.
The gap is particularly wide in the apartment market. Luxembourg's Housing Observatory calculated an average of €9,713 per square metre in Luxembourg, compared to €2,488 in Lorraine, €2,678 in Wallonia, and €3,645 in Rhineland-Palatinate, the preferred destination for ‘reverse’ cross-border workers or Luxembourg citizens who leave the country. Readers should note that these averages, however, do not reflect the strong disparities within Luxembourg.
Out of more than 21,000 listings analysed in Luxembourg, LISER found flats with prices per square metre ranging from €2,200 to €19,879. Border regions show similar variation. In Lorraine, for example, flat prices range from €505 per square metre to €5,728 per square metre, depending on location, property condition, and energy performance.
As for houses, although the average price is well below that in Luxembourg (€5,957 per square metre), this does not prevent prices from climbing to over €15,000 per square metre, according to LISER. This is twice as much as the maximum prices observed on the German border and almost three times as much as in Lorraine. Wallonia, meanwhile, has the lowest house prices in the region (€2,585 per square metre on average).
Pressure spreading beyond the border
While it is no surprise that housing is far cheaper outside Luxembourg, LISER’s study is useful for those searching for more affordable housing options. It also confirms a recent trend: border regions are becoming more expensive, especially Rhineland-Palatinate, as more residents leave Luxembourg in search of affordable homes.
Even so, housing remains significantly cheaper across the border than within the Grand Duchy.
Read on:
Minister Meisch cautions that economic uptick could overheat housing market
Is it still worth buying property in Luxembourg?
