What is the average Class A rent in Luxembourg?

Around 50 EUR/sqft/yr ($54 USD) across the broader Class A index. Trophy submarkets like Kirchberg command 20–40% above that.

How many months of rent-free are normal in Luxembourg?

6 months on a 9-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Luxembourg?

The Luxembourg Class A market is currently flat. Vacancy is 4.8%, which sets the negotiating context.

Headline Class A rent in Luxembourg is around 50 EUR/sqft/yr ($54 USD), with 6 months of typical rent-free on a 9-year term.

Headline Class A rent: 50 EUR/sqft/yr ($54 USD).
Trophy submarket rents (Kirchberg) push to roughly €56/sqm/mo · ≈ $67.4 PSF/yr USD.
Typical concessions on a 9-year deal: 6 months free rent.
Vacancy stands at 4.8% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Luxembourg Class A office rents and incentives

Headline Class A rent in Luxembourg is around 50 EUR/sqft/yr ($54 USD), with 6 months of typical rent-free on a 9-year term.

TL;DR

Headline Class A rent: 50 EUR/sqft/yr ($54 USD).
Trophy submarket rents (Kirchberg) push to roughly €56/sqm/mo · ≈ $67.4 PSF/yr USD.
Typical concessions on a 9-year deal: 6 months free rent.
Vacancy stands at 4.8% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Luxembourg are quoted in EUR per sqft per year. Across the broad Class A index the figure is 50, but the trophy tier in Kirchberg reaches roughly €56/sqm/mo · ≈ $67.4 PSF/yr USD. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Luxembourg concessions on a 9-year Class A lease run to 6 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 17% federal corporate income tax plus 7% solidarity surcharge plus 6.75% Luxembourg City municipal business tax for an effective combined rate of 24.94%. Material participation exemption regime.

Where rents land by submarket

Kirchberg sits at the top end (~€56/sqm/mo · ≈ $67.4 PSF/yr USD). Gare District clears around €44/sqm/mo · ≈ $53 PSF/yr USD as the prime tier. Esch-Belval represents the value end at ~€28/sqm/mo · ≈ $33.7 PSF/yr USD. The full submarket map is on the Luxembourg city page.

Key facts

city	Luxembourg
country	Luxembourg
region	EMEA
classARentLocal	50 EUR/sqft/yr
classARentUsd	$54/sqft/yr
vacancy	4.8%
typicalLeaseYears	9
typicalRentFreeMonths	6
submarkets	5
primeYieldPct	4.8%
trophyRent	€56/sqm/mo · ≈ $67.4 PSF/yr USD
primeRent	€44/sqm/mo · ≈ $53 PSF/yr USD

Frequently asked questions

What is the average Class A rent in Luxembourg?: Around 50 EUR/sqft/yr ($54 USD) across the broader Class A index. Trophy submarkets like Kirchberg command 20–40% above that.
How many months of rent-free are normal in Luxembourg?: 6 months on a 9-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Luxembourg?: The Luxembourg Class A market is currently flat. Vacancy is 4.8%, which sets the negotiating context.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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