„Es ist eine Katastrophe“: LUXEMBOURG CITY -Einwohner sprechen Frustration, als die Erschwinglichkeit von Wohnraum den Bruchpunkt trifft

„affordability“, I would say that availability is the main problem. We are a small landlord and we are following the legal 5% rule. In the past we searched tenants ourselves but last year we switched to using an agency because the amount of applications is just unmanageable. For a single unit we put up online we received over 50 applications. 10 years ago it was like 3-6 applications. Our agent lists the apartments with one room less than they actually have to reduce the amount of applications he has to go through.

Also something in the article I don’t agree with:

> weak tenant protections leave many feeling powerless against landlords

It took us over 2 years, 20.000 Euros and 4 court sessions to get a tenant out of our apartment who wasn’t paying the rent for years. Tenant protections aren’t weak. It’s true that landlord in Luxembourg are greedy and often don’t follow the 5% rule but our problems definitely not come from too little tenant protections. The problem is rather that court cases are super expensive here which means that it’s only affordable for rich people and poor people (because it’s paid for them) but the majority of people who is neither rich nor poor in Luxembourg and therefore have to pay it themselves just can’t afford to enforce the laws.

2000€ for 50qm is ridiculous. 1000€ for 140qm is also ridiculous.

But what I don’t understand: why do most people try to live in the city? It’s so much cheaper if you simply rent a place in a small town in Luxembourg (yes still expensive compared to neighbouring countries but at least affordable). Public transport is reliable and frequent and the roads are good.

Why even bother to live in the city?

Well, this is the thing in all dynamic area unfortunately. Despite what you think, it’s not a landlord paradise neither. I have an appartment that I paid c. 500k and I get less than 20k of rent per year from my tenant, so the return is less than 4% gross while risk free rates are at 3% or more. It’s almost charity to be honest.

Name one city in Europe that is financially relevant and does not have the same issues. That is the consequence of „unlimited growth“.