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.
Due to the current global economic conditions, the projections have undergone a significant shift, and the Luxembourg economy is now on track for a mild recession in 2023.
In the third quarter of 2023, the Luxembourg office market saw 38 transactions, resulting in a total take-up of 12,485 sq m.
In line with a challenging start to the year, with investment volume reaching only 25 million euros in the first half, marking it as the slowest start on record, the third quarter saw a similar level of quietude.
Due to persistently high inflation and increasing interest rates, the ”cost-of-money” is on the upswing, causing a shift in the underlying dynamics of the commercial real estate market.
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Above 9,000 sq m of take-up was recorded during the second quarter of the year, bringing the total of 2023 to 14,600 sq m.
Only one investment transaction was observed in the retail segment since the beginning of the year.
To counter inflation in the Eurozone, the European Central Bank continue to raise its interest rates, the latest one dating back from June 2023.
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