Rents in Luxembourg City can be expensive – it is comparable to rental rates in Paris. This is because of the significantly number of expatriates living and working in Luxembourg City. Hence, it is not uncommon to discover that some Luxembourg workers commute daily from Belgium, France and Germany, where housing costs are lower.

Finding suitable accommodation at short notice can be challenging. If you engage the assistance of a housing estate agent (agencies immobilieres), note that their fees can be high (at least 1-month's rent, plus 15% VAT). One way is to ask around the expatriate community, or check the classifieds of the expatriate newspapers / online communities. Sometimes, you might be able to spot ‘to-let' signs (a louer). If you can understand French or German, try the local newspapers. Wort's Tuesdays listings for available accommodation for rent are good. Lux-Bazaar is on Fridays.

Most property in Luxembourg is rented unfurnished. Expatriates who are looking for furnished accommodation should be prepared to pay a premium for furnishings. The inventory and condition report (etat des lieux) will list the state of the fixtures and fittings that are included in the apartment.

Most property owners in Luxembourg City will ask for a deposit – this can range from one to three months' rent. In Luxembourg, tenants' rights are well protected under the lease agreement, and eviction of tenants is a difficult process for property owners. Be prepared for the property owner to ask to verify your employment and residency status, and in some cases, even your income level, before they decide to lease the property to you. Most rental agreements are for a fixed term, and there are guidelines if expatriates were to ask to terminate the lease. If you will be living in an apartment, do take note of any house rules, such as storing of bicycles or noise, or the moving of bulky items, parking by guests, and so on.

Take note that apart from the basic rent charge, there are other monthly contributions towards common charges (maintenance and repair of common areas such as lobbies and lifts, and the cost of hiring a concierge or building manager). In some apartments, if there are shared utilities such as heating or hot water, these are included as common charges. Common charges can add up to 20 per cent to the basic rent. In some apartments, laundry is done in allocated rooms, usually the basement of the apartment building, and the use of the laundry rooms may or may not be included in the basic rent. Garages, parking spaces and additional storage rooms may or may not be included in the basic rent. Expect to pay upfront about 2-3 months' rental deposit to your property owner, which is refundable at the end of the housing lease, if there are no damages / restoration work required.

Expatriates who have lived in Luxembourg City for years do consider purchasing a property for their long-term accommodation. Homeownership in Luxembourg is high - around 75% of Luxembourgers own their own homes. There are some restrictions and guidelines to foreigners owning property in Luxembourg. However, due to the limited supply and growing demand, the sale prices of property in Luxembourg is almost as high as property prices in London.

Luxembourg as a whole is a small country, and hence you will find expatriates living throughout the country. Some EU-national expatriates prefer to reside in neighboring Belgium, French or German cities, where the prices of property are lower. If high rental rates are not a consideration, popular residential areas close to the city center (5-10 minute walk) include Belair, Hollerich (close to nightlife) and Limpertsberg. Kirchberg is close to the EU institutions, banks and The European international school. There are many smaller cities located around 20 minutes away (by bus or train), and these are less expensive than the residential areas around Luxembourg City. Take note of traffic jams during peak hours.