Published on 27 October 2025 (Last updated on 13 November 2025)
A RAPIDLY GROWING NEED FOR HOUSING
In Luxembourg, finding accommodation has become a real challenge. Every year, thousands of new arrivals (young professionals, cross-border workers, expatriates) settle in the country to work or study.
The situation is simple: demand is skyrocketing, while supply is stagnating.
Land is scarce, rents are rising, and construction is struggling to keep up.
According to projections, more than 30,000 additional homes will be needed by 2060 to meet the needs of the population.
Faced with this growing tension, many people are struggling to find accommodation suited to their situation: temporary stays, professional mobility, or personal transitions.
This is where a new model of housing is emerging: co-living.
COLIVING, AN INNOVATIVE, TURNKEY SOLUTION
Coliving is much more than just an improved flat share.
It is a modern lifestyle, designed to offer comfort, flexibility and social connection in a single concept. Each residence combines:
- furnished and equipped private spaces,
- friendly shared spaces,
- and included services (cleaning, maintenance, internet, subscriptions, etc.).
OPPORTUNITIES FOR INVESTORS
Investing in co-living in Luxembourg means taking advantage of a market that is still largely untapped but has immense growth potential. Where traditional rentals reach their limits (vacancy rates, time-consuming management, sometimes reduced profitability), co-living offers real advantages:
1. Superior profitability
Sharing spaces and services generates higher overall rental income than traditional rentals. Each private room is rented separately, which maximises the return per square metre.
2. Structural and growing demand
Every year, Luxembourg attracts thousands of expatriates, students and young professionals looking for flexible housing solutions. This highly mobile population ensures continuous demand, reducing the risk of rental vacancies.
3. Greater resilience to property market cycles
Unlike other property asset classes, co-living remains attractive even in times of economic uncertainty, as it meets an essential and immediate need: quick and easy access to accommodation.
PITFALLS TO AVOID BEFORE INVESTING
While co-living represents a tremendous opportunity in Luxembourg, it also has pitfalls that unprepared investors often fall into. Knowing them in advance means avoiding costly mistakes.
The success of a co-living residence depends largely on its location. Being too remote or poorly served by transport greatly reduces attractiveness. Expatriates and young professionals favour neighbourhoods connected to economic and academic hubs.
Some properties are unsuitable for co-living: lack of communal areas, poor layout, no emergency exits, inability to create multiple bathrooms. Investing in an unsuitable asset results in excessively high conversion costs for a limited final return.
Luxembourg has specific rules governing leases, town planning and safety in relation to furnished room rentals. Failure to involve them from the outset of the project can lead to delays, additional costs, or even administrative deadlock.
Running a co-living residence cannot be improvised. Tenant turnover, daily maintenance, managing communal areas and administrative tasks require a constant on-site presence. Without a specialised operator, management costs skyrocket and tenant satisfaction plummets, which directly impacts profitability.
INVEST WITH FLEXIROOM AND ENSURE A HIGH RETURN
At Flexiroom, we wanted to go even further:
Our mission is to simplify the lives of our residents and restore meaning to rental property. We create welcoming living spaces, managed on a daily basis by an attentive local team who are always available to help. Each residence is on a human scale, and each co-living resident is supported from their first contact with us until the end of their stay.
That’s what makes all the difference: co-living at Flexiroom is an experience before it is a product.
So, to avoid falling into investment traps and ensure your project is sustainable, you can call on a specialised investment fund that is already established locally, such as Flexiroom.
By investing with us, you have the opportunity to invest in assets located in areas with high rental demand, excellent accessibility and strong residential appeal.
Indeed, we focus on acquiring undervalued assets, which we renovate and reposition before operating them ourselves.
This integrated model enables us to generate a double return, rental income and capital gains, while ensuring complete control of the value chain.
Do you have any questions about our strategy ? our portfolio ?
By telephone on +352 691 164 111 or via our form.
