Where to live in Luxembourg City in your first year

Your first year in Luxembourg City sets the tone for the rest of your time here. The city is compact, but the districts feel very different in terms of vibe, price and day-to-day life. This guide is for people who are moving to Luxembourg City for work and trying to answer one question: where should I live in my first year, given my lifestyle and my budget.

We will walk through how to think about your first year, a quick budget reality check, key neighbourhoods by lifestyle, and example scenarios.

How to think about your first year in Luxembourg City

Start with your basics

Before you fall in love with a specific neighbourhood name, align on a few practical points:

• Where will you work most of the time
• Whether you will be mostly office-based, hybrid or mostly remote
• If you are moving alone, as a couple or with children
• Whether you want to be in the middle of the action, or prefer quiet and green
• Whether you will have a car, or rely on tram, bus and trains

In Luxembourg, public transport is free, frequent and generally reliable, which gives you more freedom to live a little further out and still have an easy commute.

Decide if your first year is a bridge or a destination

For many newcomers, the first year is a bridge:

• From temporary housing to a long-term lease
• From living alone to bringing a partner or family later
• From not knowing the city to having a clear view of where they want to stay

If you see year one as a bridge, you might accept a smaller apartment in a central area while you learn the city, then move to a different district later. If you already know you want space and schools, you might go straight to a family-focused neighbourhood.

Budget reality check for Luxembourg City

Luxembourg City is one of the more expensive capitals in Europe in terms of rent. The average asking rent per square metre in the municipality is high, with central and prestigious districts clearly above the national average.

Roughly speaking:

• A one-bedroom apartment in or near the city centre often sits between about €1,800 and €2,800 per month, depending on size, building and district
• Outside the very central areas, one-bedrooms are usually somewhat cheaper, but still often above €1,500 per month

Within the city, some districts are known as top of the market, others as relatively more affordable.

• More expensive on average: Limpertsberg, Belair, Kirchberg, parts of Gasperich and Merl
• Relatively more affordable (by Luxembourg standards): Gare, Hollerich, Bonnevoie, Cessange, Eich, Mühlenbach, Weimerskirch

For a one-bedroom or compact two-bedroom, think in three budget bands:

• Premium: comfortable paying at the higher end to be central, prestigious or very close to your office
• Mid-range: want balance between space, comfort and price
• Budget-conscious: ready to compromise on location, building age or noise to keep costs down

You will see these bands mentioned as we go through the neighbourhoods below.

Central and historic neighbourhoods if you want to be in the middle of everything

Ville Haute – historic centre and high prices

Ville Haute is the old town on the plateau. It is full of restaurants, shops, historic buildings and views over the valleys.

• Lifestyle: very central, walkable, vibrant during the day, quieter at night outside of events
• Who it suits: people who want to walk everywhere, enjoy restaurants and culture, and do not mind living in an older building
• Budget band: premium

Pros: immediate access to city-centre life, short commute to many offices, beautiful setting.
Cons: expensive, limited parking, stock can be hard to find, and there are tourists and events.

Grund and Clausen – picture-postcard valley living

Down in the valley below the old town you find Grund and nearby Clausen, with historic houses, small streets and riverside walks.

• Lifestyle: very scenic, village feeling under the cliffs, with bars and restaurants especially in Clausen
• Who it suits: people who value charm and views more than modern buildings, and who are fit enough for hills and stairs
• Budget band: premium to mid-range, depending on size and exact location

Pros: beautiful environment, close to the centre via lifts and bridges, unique atmosphere.
Cons: limited availability, can be noisy near nightlife, and there is a lot of vertical movement between valley and plateau.

Dynamic and connected neighbourhoods if you want energy and easy transport

Gare – busy, urban and practical

Gare is the district around the main railway station. It is diverse, busy and well connected, with direct train and bus links across the country and beyond.

• Lifestyle: urban streets, a mix of older buildings, shops and restaurants, high foot traffic
• Who it suits: people who travel often by train, like city energy and do not mind some noise
• Budget band: mid-range

Pros: top public-transport connections, food options, relatively more choice in rentals.
Cons: noise, traffic, and some streets feel less residential and more transient.

Hollerich – young, evolving and more affordable

Hollerich sits just west and south-west of Gare. Historically more industrial, it is now a mix of housing, offices and nightlife.

• Lifestyle: up-and-coming, with bars, some newer buildings and ongoing development
• Who it suits: young professionals, people who want to stay close to Gare and the centre, but pay a bit less
• Budget band: mid-range to relatively affordable

Pros: good bus connections, access to the centre and Cloche d’Or area, more budget-friendly options.
Cons: some streets can be noisy, and the look of the area is less polished than Belair or Limpertsberg.

Business and new-build districts if you work in finance or EU institutions

Kirchberg – European quarter and modern living

Kirchberg sits on a plateau to the north-east, connected to the old town by the red bridge. It hosts many EU institutions, banks and large companies, plus a big shopping centre, concert hall and museum.

• Lifestyle: modern apartments, offices, shopping, sports and culture, with green spaces mixed in
• Who it suits: people who work in Kirchberg, international families who want proximity to international schools, professionals who like modern infrastructure
• Budget band: premium

Pros: very convenient if you work on the plateau, tram access to the centre and the station, international environment.
Cons: can feel more like a business district than a traditional neighbourhood, nightlife is more limited and prices are high.

Gasperich and Cloche d’Or – new business and shopping hub

Gasperich in the south of the city includes the rapidly developed Cloche d’Or business and residential area, with new offices, apartments and a large shopping mall.

• Lifestyle: new-build apartments, big retail, modern offices, ongoing construction in some parts
• Who it suits: people working in Cloche d’Or, those who prefer new buildings and easy access to shopping and the motorway
• Budget band: premium to upper mid-range

Pros: modern housing, new facilities, fast access to the motorways and bus links.
Cons: less historic character, can feel like a planned district, construction noise in some areas.

Leafy residential neighbourhoods if you want quiet and family-friendly

Belair – chic and residential

Belair is a residential district west of the centre, known for its tree-lined streets, parks and calm atmosphere. It is one of the most prestigious places to live in the city.

• Lifestyle: quiet, green, with local shops and good access to schools and parks
• Who it suits: families, professionals who want space and calm within reach of the centre
• Budget band: premium

Pros: high quality of life, good schools nearby, easy access to parks.
Cons: very high rents, limited supply, and less nightlife.

Limpertsberg – prestigious and close to everything

Limpertsberg sits just north of the centre and is also considered one of the most desirable districts. It has elegant buildings, schools and cultural venues and is popular with both families and professionals.

• Lifestyle: residential, elegant, with quick access to the centre and Kirchberg
• Who it suits: families, senior professionals, people who value a refined environment
• Budget band: premium

Pros: excellent location, strong community feel, many services and schools.
Cons: some of the highest rents in the city and very limited availability.

Merl and Cessange – green, practical and more relaxed

Merl is adjacent to Belair, known for Parc de Merl and a mix of houses and apartment buildings. Cessange is slightly further out, quieter and increasingly popular with families.

• Lifestyle: residential, family-oriented, with a calmer pace
• Who it suits: people who want space, green areas and a more local feel, while staying inside the city
• Budget band: upper mid-range to premium

Pros: parks, schools, more space relative to central districts, reasonable access to the centre and to Cloche d’Or.
Cons: still quite expensive, and you will rely more on buses or a car.

More budget-conscious choices (for Luxembourg standards)

There is no truly cheap district in Luxembourg City, but some areas are relatively more affordable while still well connected.

Bonnevoie – diverse, lively and relatively affordable

Bonnevoie sits to the south-east of the centre, close to Gare. It is known as a diverse, creative and evolving neighbourhood that many expats choose when they want a compromise between price and location.

• Lifestyle: mixed and lively, with cafés and local shops, some quieter streets and some more urban
• Who it suits: young professionals, couples, people who value diversity and do not mind a bit of grit
• Budget band: mid-range to relatively more affordable

Pros: good bus connections, short ride to the centre and the station, more space for the same budget.
Cons: look and feel varies street by street, and some parts can be noisy.

Beggen, Dommeldange, Eich and Hamm – quieter edges with better value

Districts like Beggen and Dommeldange in the north and Eich and Hamm in the east are more residential and quieter. They are still inside the city limits and have bus or train links to the centre.

• Lifestyle: suburban feel, with more houses, small buildings and green surroundings
• Who it suits: people who want calmer streets, are fine with a bus or train commute and prefer more space for their money
• Budget band: mid-range, often with better value per square metre than the most central or prestigious districts

Pros: more space, quieter streets, nature close by.
Cons: longer trip to nightlife and some offices, less of an urban buzz.

Example scenarios for your first year

Scenario 1 – Single professional working in Kirchberg

• Works in a bank or EU institution in Kirchberg
• Wants short commute, modern building and some nightlife

Good fits: Kirchberg, Limpertsberg, Gare or Bonnevoie.

Scenario 2 – Couple with one child, office in the centre

• One partner works near the old town, the other hybrid or remote
• Child in daycare or early school

Good fits: Belair, Merl, Limpertsberg if budget allows, or quieter parts of Bonnevoie.

Scenario 3 – Intern or young hire on a tighter budget

• Short- to medium-term contract, lower salary
• Wants to meet people and explore the city

Good fits: Gare or Hollerich for energy and shared flats, Bonnevoie, or outer districts like Beggen and Dommeldange if they find a good deal.

How to choose in practice

To turn all of this into an actual decision:

1. Decide your monthly housing budget, including charges and parking if needed.
2. Mark your main office location and regular places you will need to reach.
3. Choose two or three neighbourhoods that fit your lifestyle and budget band.
4. Be open to starting in a mid-term rental for your first year to learn the city, then moving to a long-term lease later.
5. When you compare options, weigh commute time, size, light and noise level, not just postcode.

Final thoughts

Luxembourg City is small enough that you can cross it quickly, yet diverse enough that your choice of neighbourhood will change your daily life. In your first year, you do not need to find your forever place. You need a district that fits your current work, your budget and the way you want to live while you get to know the country.

Use this guide to shortlist a few neighbourhoods, then focus your search there instead of trying to scan the entire map at once.

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