As the UK and EU march inexorably towards Brexit, Luxembourg’s property values are rising in response to the increasing demand. That’s according to media reports.
It is also claimed in the media that banks, financial firms and insurance companies are selecting Luxembourg as one of the main Brexit-escape destinations. And I’ve seen reports that go as far as to say that seedier areas of Luxembourg are being re-developed in direct response to this rise in demand.
A number of media reports boasted the headline “Brexit Bankers May Find Home in Luxembourg’s Red Light District”!
Frankly, it seems that this was more about creating a sensational headline than accurate reporting!
The Red Light District is essentially a collection of streets near the train station which are notorious for high levels of drug dealing and crime. There’s no way that Saunders 1865’s local consultants on the ground in Luxembourg would advise any of our clients to take a rental home in that area.
A new development that’s cited in support of this red light district claim, is a block of 150 flats in the area of Rue de Strasbourg.
Developers are advertising the properties to young professionals as the only affordable block of flats in the city.
Currently, 57 flats are scheduled to be ready before the summer, with reported purchase prices of around half a million euros for a 2-bedroom flat.
So the main premise behind these media reports is, residential property prices in Luxembourg are rocketing due to an influx of bankers – so much so that inbound bankers are having to resort to seedier parts of the city in order to afford a decent home.
In our experience, nothing could be further from the truth. Luxembourg is actually a relatively inexpensive place to live if you have the right advice.
Here are the average monthly rents for Luxembourg City:
- $1605 for a 1-bed apartment
- $2469 for a 2-bed apartment
- $3333 For a 3-bed apartment
- $5555 for a 3-bed house
As you can see, renting in Luxembourg is actually very affordable. No doubt this is an important factor behind this EU location being chosen by the likes of (for example):
- American International Group Inc.
- ING SA
- FM Global
- RSA Insurance
- JP Morgan Chase & Co
- Bank of Singapore
- Lloyds of London
But when the people in these institutions need to find homes in Luxembourg it’s important that they are steered clear of those property dealers who are seeking to take advantage of them by hyping up prices. That means their employer should provide them with rental search support and arrival support to make the transition as smooth and easy as possible for them.
Saunders 1865 has been helping relocate talent for banks and financial firms for more than 3 decades. Our local experts will hold your employees’ hands throughout the transition to the EU location.
Consider us your Brexit Relocation Partners throughout the process.
To set up a free consultation do use our Contact Form or call our London office on +44 20 7590 2700.
If you prefer, email us at firstname.lastname@example.org Let’s start a conversation today.
You can find out more in our Moving to Luxembourg report here
Click here to watch our video about our Brexit relocation services