An increase in the monthly advertised rent for flats particularly true in the centre of the country | LISER

An increase in the monthly advertised rent for flats particularly true in the centre of the country

Statistics presented in this indicator correspond to the rents requested by landlords when they submit a rental advertisement. These are monthly rents, without rental charges (heating, electricity, water, etc.).

Advertised rents for apartments have risen less sharply than house prices

Between 2008 and 2017, the annual growth rate of the advertised rent per m² for an apartment is about 3%. This increase in average advertised rents is significantly lower than the one recorded for the sale prices of existing apartments (+ 4.0% per year) and for apartments under construction (+ 4.7% per year).

The relative homogeneity of the evolution of advertised rents over the territory

The average advertised rent for an apartment in Luxembourg-City thus increased by 3.2% per year. For the large majority of other urban municipalities in the country, for which activity in the apartment rental market is sufficiently developed, the growth rate of the advertised rent per m² for an apartment increased by 2.5% to 3.8% per year on average.

Statistics presented in this indicator correspond to the rents requested by landlords when they submit a rental advertisement. These are monthly rents, without rental charges (heating, electricity, water, etc.).

Since 2008, advertised rents for apartments have risen less sharply than house prices in the Grand Duchy of Luxembourg. The average advertised rent per m² for an apartment has risen from € 15.29 / m² in 2008 to € 19.91 / m² in 2017. This represents a total increase of 30.3%, ie on average +3.0 % per year. This increase in average advertised rents is significantly lower than the one recorded for the sale prices of existing apartments (+ 4.0% per year) and for apartments under construction (+ 4.7% per year).

The other interesting difference compared to the sales market is the relative homogeneity of the evolution of advertised rents across the territory. The average advertised rent for an apartment in Luxembourg City increased by 33.3% between 2008 and 2017, ie + 3.2%. For the large majority of other urban municipalities in the country, for which activity in the apartment rental market is sufficiently developed, the average advertised rent increased by 25% to 40% in total between 2008 and 2017, + 2.5% to + 3.8% per year on average. In comparison, in the sales market for apartment (existing ones or under construction), the fluctuation are much greater, ranging from roughly 3% to 5.8% between 2008 and 2017 (see Average sale price per m² for apartments under construction, by municipality (2008-2017) and Average sale price per m² for existing apartments, by municipality (2008-2017)) .

Field

Apartments advertised for rents via real estate advertisements, a given year. This is the flow of new rental apartments, not the stock of rented apartments.

This is the rent asked by the landlord before negotiation by potential tenants, excluding rental charges.

Source

Ministère du Logement – Observatoire de l’Habitat

Statistical information taken from real estate advertisements.

Reading Guide

The average monthly advertised rent (excluding rental charges) for an apartment in 2017 was higher than € 20 / m² in Luxembourg-Ville, while it was between € 16 and € 18 / m² in Esch-sur-Alzette.

The statistics for advertised rents by municipality can be downloaded from the website of the Observatoire de l'Habitat:

http://observatoire.liser.lu/tableaudeprix_recherche.cfm?pageKw=88

Publications related to the topic of the indicator
LISER, 2017, Le logement en chiffres n°6, 10 p.
LISER, 2016, Le logement en chiffres n°5, 10 p.
BOUSCH Patrick, LICHERON Julien
In: SCHRONEN Danielle, URBE Robert. SozialAlmanach 2012. CARITAS Luxembourg, 2012, pp. 249-258.
POUGET Clémence, FELTGEN Valérie, SKOCZYLAS Konrad, DECOVILLE Antoine
CEPS/INSTEAD, 2013, Dossiers thématiques (Observatoire de l'Habitat) n°9-2013, 42 p.
DE LANCHY Gaëtan
CEPS/INSTEAD, 2012, Hors série (Observatoire de l'Habitat), 16 p.