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
While Luxembourg GDP held up well in the first three quarters of this year, continued high inflation is expected to cause GDP to stagnate in the final quarter of the year and the first semester of 2023.
OCCUPIER FOCUS
Following two record years for the take-up in Luxembourg, 2022 witnesses a return to a regular take-up. In Q3, less than 60,000 sq m of take-up was recorded which brings the total take-up year to date to 170,000 sq m, in line with the past average.
INVESTMENT FOCUS
A volume of 90 MEUR has been invested on the Luxembourg office market in Q3, which brings the total invested volume to 628 MEUR.
OUTLOOK
To counter inflation in the Eurozone, the European Central Bank has delivered three consecutive rate hikes, totalling 200 bps, and is expected to proceed with other rate increases in the coming months.
Download our Office market report below
Retail
ECONOMIC OVERVIEW
While Luxembourg GDP held up well in the first three quarters of this year, continued high inflation is expected to cause GDP to stagnate in the final quarter of the year and the first semester of 2023.
LETTING MARKET
6,500 sq m of take-up were recorded on the Luxembourg retail market in Q3, the best quarter of the year despite unprecedented context.
INVESTMENT MARKET
No investment transaction was recorded on the Luxembourg retail market this quarter.
OUTLOOK
To counter inflation in the Eurozone, the European Central Bank has delivered two consecutive rate hikes, totalling 125 bps, and is expected to proceed with other rate increases in the following months.
Download our Retail market report below
