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.
Office
ECONOMIC OVERVIEW
Luxembourg’s economy is forecasted to grow 2.71% in 2022. This is expected to slow down and stabilise at 2.48% for the next year and slow down further to 1.76% in 2024.
OCCUPIER FOCUS
In Q1, 71,250 sq m of take-up was recorded on the Luxembourg office market, which is consistent with the five-year quarterly average.
INVESTMENT FOCUS
In the first quarter of 2022, roughly 320 MEUR has been invested in the Luxembourg office market, which is in line with the five-year average.
OUTLOOK
In February 2022, the Russian invasion of Ukraine has had an exacerbating effect on the high level of inflation to a record level in Luxembourg. If the conflict persists, the global economy could be severely affected.
Retail
ECONOMIC OVERVIEW
The consumer price index in Luxembourg is forecasted to climb to 6.0% in 2022, a record peak.
LETTING MARKET
A decent 6,000 sq m of take-up has been recorded in Q1 2022, despite unprecedented circumstances. Following the robust year 2021, the Luxembourg retail landscape shows a strong resilience to shocks.
INVESTMENT MARKET
No deal on the retail investment market was recorded in Q1 22. The low level of investment observed these last years was mainly due to a lack of retail opportunities in the Luxembourg market.
OUTLOOK
The Luxembourg retail market is changing, with an increase of online retail sales (around 9% growth last year according to provisional figures) and a continuous growth of spending in the Food & Beverage sector amongst others.
