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.
Inflation in Luxembourg rose to an all time high of 7% in April but eased to 6.8% in May 2022.
In the second quarter, 43,000 sq m of take-up was recorded on the Luxembourg office market.
After a strong first Q1 for the investment market, the second quarter witnesses slower activity with only 190 MEUR invested across three transactions.
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.
The consumer price index in Luxembourg is forecasted to climb to 6.0% in 2022, a record peak.
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.
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.
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.