Rental yield in Luxembourg: how to assess an investment property

A practical framework for comparing rent, purchase price, charges, tax, vacancy risk and location quality in Luxembourg.

Rental yield in Luxembourg should be assessed with caution. Asking rents, purchase prices, service charges, financing costs, vacancy risk and renovation obligations all affect the result, so a simple gross percentage is never enough.

• Gross yield is only a first screen; net yield after costs is the figure that matters.
• Esch-sur-Alzette, Differdange, Dudelange and other regional centres must be compared street by street and building by building.
• CPE rating, charges and upcoming co-ownership works can change the investment case materially.
• Use official and market sources, then validate assumptions with conservative rent and vacancy scenarios.