Share:

Luxembourg Real Estate Market View

Sébastien Bequet • 25/03/2021

The Luxembourg economy has been hit hard by the COVID-19 pandemic, although the impact is more limited compared to other European economies. However, the unemployment rate rose, business and consumer confidence declined, and business perspectives have been lowered. The second wave of the pandemic has also hit the economy with the long closure of non-essential shops (only reopened as of 11 January 2021) while cafés and restaurants will remain closed until March 2021. 

However, take-up reached a new historical record of more than 350,000 sq m. Nevertheless, companies continue to move to a more hybrid way of working, combining working from home and office.  

On the retail market, rents are under pressure, though expected to remain relatively stable throughout 2021 after having experienced declines in 2020 in the high streets and shopping centres segments as activity and footfall were below average levels. However, letting activity was in line with the last- year's average.  

On the investment market, appetite remains high for the best assets though investors are increasingly cautious. However, some significant transactions could find a positive outlook in 2021 as this concerns very qualitative assets, with highest environmental performances and a strong occupancy. On the retail market, the situation will be more mitigated though out-of-town retail should continue to witness interest, especially where a food retailer is present.  

 


10 February

The Luxembourg economy has been hit hard by the COVID-19 pandemic, although the impact is more limited compared to other European economies. However, the unemployment rate rose, business and consumer confidence declined, and business perspectives have been lowered. The second wave of the pandemic has also hit the economy with the long closure of non-essential shops (only reopened as of 11 January 2021) while cafés and restaurants will remain closed until March 2021. 

After low activity levels observed in the office market in Q2, activity boomed in the occupier market in Q4, with notable deals in the public sector. As a result, take-up reached a new historical record of more than 350,000 sq m. In the retail market, rents are under pressure, though expected to remain relatively stable after having experienced declines in 2020 in the high streets segment as activity and footfall fell below average. However, letting activity was in line with the last-year’s average. On the investment market, appetite remains high for the best assets though investors are increasingly cautious. 

To achieve a well-sequenced lifting of the lockdown restrictions and limit the impact of the second wave of COVID-19 infections, the Government announced a large-scale fiscal package to mitigate the consequences of the virus outbreak, while it also decided to close the border with Belgium for non-essential travel. 

 


13 January

The Luxembourg economy has been hit hard by the COVID-19 pandemic, although the impact is more limited compared to other European economies. However, the unemployment rate rose, business and consumer confidence declined, and business expectations have been lowered. The second wave of the pandemic has also hit the economy with a long closure of non-essential shops (only reopened as from 11 January 2021) while cafés and restaurants will remain closed until March 2021. 

After low activity levels observed on the office market in Q2, activity is now picking up again with notable deals in the pipeline, both on the investment and occupier market. On the retail market, rents are under pressure, though expected to remain relatively stable after having experienced declines in 2020 in the high streets segment as activity and footfall were below average levels. However, on the investment market, appetite remains high for the best assets as there is plenty of liquidity on the market. 

To achieve a well-sequenced lifting of the lockdown restrictions and limit the impact of the second wave of COVID-19 infections, the Government announced a large-scale fiscal package to mitigate the consequences of the virus outbreak.

 


13 October

Luxembourg’s economy will contract sharply this year as a consequence of the COVID-19 crisis. The combined supply, demand and financial shock of the crisis means GDP is expected to contract by 6.2% in 2020, before growing almost 10% in 2021. Risks remain to the downside, linked to the effectiveness of the containment measures and the long-term consequences of disruption to the economy.  

After low activity levels seen in the office market in Q2, activity is now picking up again with notable deals in the pipeline, both in the investment and occupier markets.  

In the retail market, rents are under pressure and experienced new declines in Q3 in the high street sector as activity and footfall remains below average levels. However, on the investment market, appetite remains high for the best assets as there is plenty of liquidity in the market. In response to the outbreak, the Government has taken a wide range of health and containment measures to curb the spread of the virus and protect vulnerable groups.  

Furthermore, the Government adopted a large fiscal stimulus package to bolster the resources for the health system and help maintain businesses and jobs. The measures consist of €2.3 billion in fiscal spending and €8.1 billion of liquidity support. Together with the European aid package announced recently, these measures will mitigate the losses related to coronavirus, supporting workers’ incomes, and providing liquidity for companies.

Articles associés

Covid-19 and the Belgian retail market
Insights • Retail

Le COVID-19 et le marché du Retail en Belgique

De l'information mise à jour sur l'impact de la pandémie du COVID-19 sur le marché du Retail en Belgique. 
Cédric Van Meerbeeck • 14/01/2021
The Belgian industrial and logistics market
Insights • Logistics

The Belgian industrial and logistics market

Cushman & Wakefield’s global team of research experts has produced a study on the logistics sector’s performance and near- to medium-term outlook in its new report, 2021 Global Logistics Outlook, considering the increased spotlight shone on the sector since the COVID-19 pandemic.
03/06/2021
Brussels office districts
Insights • Office

Les principaux quartiers de bureaux à Bruxelles

Découvrez un aperçu de la situation actuelle des principaux quartiers de bureaux à Bruxelles ainsi que certaines prévisions pour les futurs occupants et investisseurs sur la façon dont ces zones évolueront en termes de location et d'investissement. 
08/04/2021
Brussels Office Marketbeat
Insights • Economy

Belgium Real Estate Market View

A regular update on the commercial real estate market in Belgium.
Cédric Van Meerbeeck • 25/03/2021
Belgian hospitality industry
Insights • Hospitality

Le secteur hôtelier en Belgique

Cushman & Wakefield Hospitality présente son bilan de performance 2020 pour le marché hôtelier belge, ainsi que des informations sur la région du Benelux grâce a sa nouvelle série d'enquêtes du marché hôtelier auprès des opérateurs hôteliers, l'OperatorBeat. 
04/03/2021
The future of the office in Belgium
Insights • Workplace

L'avenir du bureau en Belgique

Dans cet article, nous examinons à quoi ressemblera l'avenir du bureau dans un monde post-COVID-19. Nous démontrons comment les bureaux continueront à apporter une valeur ajoutée aux employés et aux employeurs à l'avenir.
Sara Staels • 10/02/2021
The investment market in Belgium
Insights • Investment

Le marché de l'investissement en Belgique

Retrouvez nos analyses afin de mieux comprendre le marché de l'investissement immobilier commercial en Belgique, que ce soit pour le marché du bureau, retail, industriel et logistique. 
Cédric Van Meerbeeck • 28/01/2021
Belgian Office and Covid-19
Insights • Office

Le COVID-19 et le marché du bureau en Belgique

De l'information actualisée sur l'impact de la pandémie du COVID-19 sur le marché du bureau en Belgique. 

Cédric Van Meerbeeck • 14/01/2021
E-commerce Logistics in Belgium in 2020
Insights • Logistics

E-commerce logistics in Belgium

The path of e-commerce logistics in Belgium has not been as straightforward as elsewhere. Nevertheless, 2020 and the unprecedented lockdown caused by the COVID-19 pandemic was the year Belgians well and truly discovered the potential of online retail. We use this opportunity to examine the story so far in logistics as well as what the future holds.
Shane O'Neill • 09/12/2020
COVID-19 and the logistics market
Insights • Logistics

COVID-19 and the Belgian logistics market

In this new article, we analyse the impacts of COVID-19 on the Belgian logistics market. How it will shape the sector for the rest of the year and beyond.
Shane O'Neill • 16/04/2020
Liège Take-up
Insights • Office

Liège, les grandes transactions de 2020

Pour conclure notre série d’articles sur le marché de bureaux liégeois, voyons avec notre expert local, Stéphane Moermans, responsable du bureau wallon de Cushman & Wakefield, comment Liège résistera au COVID-19 en 2020. 
Shane O'Neill • 10/04/2020
Building Real Estate and COVID-19
Insights • Commentary

COVID-19 and the Belgian real estate markets

As the coronavirus pandemic envelops the globe, all our teams at Cushman & Wakefield are joining efforts to get a more global view of what is happening with the commercial Belgian real estate markets. 
Cédric Van Meerbeeck • 07/04/2020
couple with face masks on Milan street
Insights • Economy

Italy Real Estate Market View

A regular update on the commercial real estate market in Italy.
Carlo Vanini • 09/09/2021
Poland
Insights • Economy

Poland Real Estate Market View

A regular update on the commercial real estate market in Poland.
Katarzyna Lipka • 08/09/2021
Looking out over Buda castle, Budapest
Press Release • Economy

Hungary Real Estate Market View

A regular update on the commercial real estate market in Hungary.
Orsolya Hegedűs • 08/09/2021
Bratislava, Slovakia
Insights • Economy

Slovakia Real Estate Market View

A regular update on the commercial real estate market in Slovakia.
Juraj Bronček • 07/09/2021
Prague, Czech Republic
Insights • Economy

Czech Real Estate Market View

A regular update on the commercial real estate market in Czech Republic.
Marie Baláčová • 25/08/2021
Rue Sainte-Catherine, Bordeaux, France
Insights • Economy

Covid-19 : Actualités économiques et du secteur Immobilier d'entreprise

Actualités de la crise sanitaire Covid-19, analyse des impacts sur le secteur de l'immobilier d'entreprise et plus globalement sur le plan économique en France.

Magali Marton • 24/08/2021
blue duotone graphic of people in office
Insights • Economy

EMEA Markets View

Our EMEA local market research colleagues share the latest real estate market views from their countries.
Andrew Phipps • 15/07/2021
Rome
Insights • Economy

Spain Real Estate Market View

A regular update on the commercial real estate market in Spain, reflecting all our service lines: Offices, Industrial, Capital Markets Group, Retail and Hospitality.
Ramiro Rodríguez • 25/05/2021
Brussels Office Marketbeat
Insights • Economy

Belgium Real Estate Market View

A regular update on the commercial real estate market in Belgium.
Cédric Van Meerbeeck • 25/03/2021
red steel building
Insights • Commentary

UK Real Estate Perspectives

As the COVID-19 pandemic envelops the globe, we are committed to providing our clients with up to the minute intelligence and commentary as to what is happening in the real estate markets.
Digby Flower • 04/11/2020
Debt and Structured Finance
Insights • Economy

Lenders brace themselves

The Debt & Structured Finance team at Cushman & Wakefield is in frequent contact with over 50 lenders and has inquired what the impact of Covid-19 developments is or is expected to be on lending activity.
Maud Visschedijk • 20/03/2020
New Perspectives (image)
Research • Topical Report

New Perspective: From Pandemic to Performance

As a global leader in the commercial real estate (CRE) industry, Cushman & Wakefield offers clients a new perspective on COVID-19’s impact on CRE and beyond, preparing them for what’s next.
Michael Boonshoft