Finding an affordable apartment for rent in Luxembourg has become increasingly difficult.
The country’s housing shortage is well known, and demand continues to rise — especially in and around Luxembourg City.

Why Rental Prices Keep Rising

Luxembourg’s economy has grown rapidly over the past decade. With the continuous expansion of major international companies, strong employment rates, and an influx of multinational firms, demand for housing far exceeds supply.

According to the latest 2025 statistics:

• Luxembourg now counts around 700,000 active employees,
• nearly 48% of the workforce are foreign nationals,
• and every year, over 600 international interns arrive for 6- to 8-month contracts.

This constant flow of young professionals creates intense competition for housing, pushing rental prices upward year after year.

The Smart Approach: Multi-Use and Coliving Investments

In such a competitive market, the smartest way to maximize both social impact and financial return is to open up properties for multi-use — transforming standard apartments into shared living spaces (coliving).

This model offers two key advantages:

• It provides affordable accommodation for young professionals and interns.
• It allows investors to increase their rental yield significantly.

Example: Turning One Apartment Into Two Profitable Units

Let’s take a 100 m² apartment  in need of renovation.
By adding:

• two bathrooms,
• two small kitchenettes,
• and creating separate living areas,

you can rent the property to two independent tenants instead of one.

Even after accounting for renovation and furnishing costs, the property can deliver a gross annual yield of up to 10% — far above traditional rental averages.

And in a country like Luxembourg, where legal and structural stability is among the best in Europe, such a property also benefits from strong long-term appreciation potential.

Why Coliving Is the Future of Real Estate in Luxembourg

Luxembourg’s job market will continue to attract international talent, while housing supply remains limited.
For investors, this means one thing: properties that can adapt to shared living will stay profitable, flexible, and in high demand.

At Theplacelux, we specialize in helping property owners and investors transform apartments into high-yield coliving spaces — combining smart renovation, modern design, and legal compliance to ensure sustainable growth.

Contact Us

Are you interested in increasing your rental income or transforming your property into a profitable coliving space?
Get in touch with our team to discuss your project and discover how Theplacelux can help you achieve high rental return in Luxembourg.