ING News

Luxembourg, 13/12/2018


  • A fourth (26%) of Luxembourgers leave home by the age of 25
  • Luxembourg has the highest proportion (71%) of home owners in Europe
  • Over half (53%) of Luxembourgers do not consider sharing their housing with their extended family an option
  • Yet most agree (80 to 82%) that housing is too expensive in the country

The latest results of the ING International Survey about homes and mortgages just came in. To no one’s surprise, when asked about housing, the first thought of Luxembourg residents is how expensive housing in Luxembourg is.

A difficult market

The Luxembourgish housing market is the most unwelcoming to newcomers throughout all surveyed countries with an impressive 9 in 10 (91%) respondents agreeing it is increasingly difficult for newcomers to the housing market to buy a house.

The main issue is undoubtedly the prohibitive prices as 80% of home owners and 82% of renters state the local market’s first characteristic is “expensive.” Home owners (38% vs 22% renters) believe the housing market is “high quality” and an investment opportunity (34% vs 23% renters), while renters (31% vs 24% home owners) qualify it as “unfair.”

Everything isn’t hopeless though; only 12% report having difficulties paying their rents or mortgages each month, which is half the European average. Most respondents in Luxembourg (86%) even agree that ownership is more financially beneficial than rental, the highest proportion amongst the surveyed countries.

Personal independence first

Despite the market’s harshness, Luxembourg residents still value their personal independence with 71% owning real estate – highest proportion in Europe – and more than half (53%) stating they would not consider sharing their housing with their extended family an option.

Also, 1 in 4 (26%) left home before the age of 26 and, on average, bought their first property before the age of 31 compared to the European average of 34.

Three quarters (76%) of Luxembourg residents say they spend up to 50% of their take-home pay on their mortgage or rent and a staggering 88% believe house prices will rise over the next twelve months (highest share amongst surveyed countries). Whether this is wishful thinking or an unfortunate prediction, only time will tell.

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