Cushman & Wakefield MarketBeat reports analyse quarterly Luxembourg commercial property activity across office and retail real estate sectors including supply, demand and pricing trends at the market and submarket levels.
ECONOMIC OVERVIEW
Navigating through a phase of short-term inflation that instills confidence in the effectiveness of restrictive monetary policy, challenges persist within the commercial property sector. The industry faces higher borrowing costs and a deceleration in economic growth that continues to impact its dynamics.
Office
OCCUPIER FOCUS
The recently recorded take-up level has now become the annual norm. Undoubtedly, there is a noticeable hesitancy in occupier demand in light of the challenging economic environment.
INVESTMENT FOCUS
During the fourth quarter, the investment market witnessed a revival in trading volumes, with over €415 million invested. This resulted in an annual total of nearly €500 million, reaching a level comparable to those observed in the aftermath of the 2008 financial crisis.
OUTLOOK
Luxembourg's economic prospects appear promising, foreseeing a steady expansion. The upcoming economic growth will be chiefly propelled by strong domestic demand, supported by both private consumption and investment.
Download our Office market report below.
Retail
LETTING MARKET
The final and fourth quarter of 2023 witnessed a take-up of 11,800 sq m, bringing the total for the year to 33,060 sq m in the Luxembourg retail letting market.
INVESTMENT MARKET
No notable transaction was recorded in the second half of 2023, which results in only one significant transaction in the retail investment market.
OUTLOOK
Luxembourg's economy has experienced a notable decline below the Eurozone average due to the substantial influence of the global economic climate.
Download our Retail market report below.
