Economic Stability

Economic Stability

Luxembourg has been showing signs of economic stability that are being reflected in the real estate market. Although the European market has not been spared from the recent crisis, Luxembourg still demonstrates a low rental vacancy rate and healthy investor appetite.


The safety of people and property is one of the country’s main priorities. It benefits from a stable government and a powerful economy. The country’s infrastructures are very developed in terms of transportation, business areas as well as information technologies. This grants Luxembourg a very high quality of life. The unemployment rate is 6.5%, comparing to the rate of 7,5% in the European Union*.

* Source: Eurostat, November 2020

83 845 BILLION**


**Sources Statista & IMF – 2020


Luxembourg offers direct access to the markets in France, Germany and Belgium. Companies are internationally minded, with more than 80% of the production of goods and services meant for export.


Luxembourg’s real estate market has continued to develop even in times of crisis. Rental income provides output revenue higher than the savings, and significant tax benefits have been implemented and continue to be applied. The demand for housing, which is largely higher than the current offer on the market, guarantees stability.

In neighbouring countries, the trend is far from optimal, yet Luxembourg has recovered from the crisis rather well, with a regular rise in the housing prices. This can be explained by the economic stability Luxembourg has continued to provide despite significant political upheavals, and also by the growing demand from expatriates who want to settle in the Grand Duchy. The real estate market has a bright future in Luxemburg and all the main indicators confirm this. Considering the growing population, the country needs more than 5,000 new homes per year to satisfy current demand.