Luxembourg MarketBeat

Virginie Chambon • 24/10/2019
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.

The GDP growth in Luxembourg is set to reach a high 3.1% in 2019 while the International Monetary Fund reviewed its global economic forecasts on the downside recently. The unemployment rate is at a low 5.4% and the cross-borders workers are strongly increasing as Luxembourg is benefiting from strong economic fundamentals. Population is also set to rise strongly in the coming years. Household spending, even on a slight downside, will remain higher than in neighbouring countries.



Some large letting transactions (mainly involving the public sector) are still expected to be closed before the end of the year (including the European Parliament in the KAD). As such, the total take-up for the year could potentially surpass the levels observed in 2018. Prime rents are expected to increase to 52€/sq m/month before the end of the year following the delivery of new projects in the CBD. The office stock is expected to increase by more than 175,000 sq m in Q4 2019, of which 95% is pre-let. Therefore, the vacancy rate is forecasted to remain at
a low level. A strong demand is still present on the investment market, but there is a clear lack of available products for sale. Yet, the investment volume is also expected to pick up mainly due to several transactions currently in the pipeline. Yields for prime products, however, are expected to remain at 4% for now.


The strong macroeconomic fundamentals should benefit to the retail sector and activity will be at record high in 2019. The still growing competition of online retail and new consumers’ habits constraint retailers to adapt. The retail units need to adapt as well in order to follow these trends. 

Get the full Luxembourg property market picture with all the market data by downloading the reports.

Current Marketbeats

Karlin, Prague, Czech Republic
Luxembourg Office Data

Office Marketbeat is a summary of the Luxembourg office property sector providing comment on recent trends as well as market data and analysis.

Luxembourg Office Marketbeat Q3 2019

Nice, France
Luxembourg Retail Data

Retail Marketbeat is a summary of the Luxembourg retail property sector providing comment on recent trends as well as market data and analysis.

Luxembourg Retail Marketbeat Q3 2019


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