Investors in Luxembourg residential property have had a good year – according to GlobalPropertyGuide portal. The average price per sq. m. of apartments in Luxembourg increased by about 13% in the year since our last Global Property Guide residential yields survey. The Statec Luxembourg apartment price database similarly showed an 11,11% price increase, during 2011.
It will come as no surprise that residential property in Luxembourg is expensive. This is an upscale city, and one pays upscale prices for property. One can expect to pay as much as 7 300 euros per sq. m. for an apartment in the best areas of Luxembourg: Belair, City Centre, Kirchberg, and Limpertsberg. Last year, apartment prices in Luxembourg’s best districts ranged from around 5 500 euros to around 6 000 euros per sq. m.
The prices of countryside houses in Moselle and Oesling have remained stable, at around 3 000 euros and 2 000 euros per sq. m., respectively.
Apartment rents have remained at the same levels as last year, so there has been some decline in rental yields, which, at between 3,71% to 3,88% for smaller sized apartments.
Source: http://www.globalpropertyguide.com/Europe/Luxembourg/Rental-Yields