Presented as a more affordable alternative, shared accommodation of furnished rooms is becoming more and more widespread in Luxembourg, but what is the reality on the market? According to a note published this Friday by the Housing Observatory, this type of housing has developed significantly, in particular to respond to the growing difficulty of access to housing in urban areas. Most often, it comes in the form of “co-living”: furnished rooms managed by specialized companies, which are offered to young expatriates.
However, rental prices per square meter are “overall much higher than in the traditional private rental market where the average rent announced is €35/m2 for an apartment in 2024. The researchers take an advert in the Rollingergrund district as an example. For a room of only 11 m2the tenant will have to pay 139 euros per square meter, or a rent of 1,529 euros, and share a house with ten other people.
Despite its high price, this type of accommodation offers, for its target audience, a huge advantage: its flexibility. Not only in terms of rental duration, but also through the provision of shared spaces, which are often managed by the rental company.
The Housing Observatory also noted that shared accommodation is mainly concentrated in and around Luxembourg City, as well as around the Esch-Belval site. Which would be consistent with the location of the targeted audience. Within the capital, the Bonnevoie and Gare districts are the most popular with “co-living” companies, despite their less favorable social situation. They concentrate “a young population with high residential mobility”.
This note is designed as “the starting point” of research lasting several years in order to contribute to the public debate on the recent emergence of this type of housing and its impact on the real estate market and housing conditions in Luxembourg.
According to the Housing Observatory, renting furnished rooms is often a transitional solution. It is popular with young adults who have just entered the job market or by people who are mobile for work.
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