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.
ECONOMIC OVERVIEW
Luxembourg's economic market in Q2 2024 is navigating a cautious course with revised growth projections, a rising unemployment rate, and a resurgence of inflation, amidst global economic slowdown and political uncertainties, yet it aims to achieve more robust growth in the coming years through strategic policy measures and a focus on stabilizing key economic indicators.
Office
OCCUPIER FOCUS
The Luxembourg office market is experiencing a significant slowdown, marked by decreased take-up, declining average rental rates, and minimal public sector activity amidst a challenging economic environment.
INVESTMENT FOCUS
The Luxembourg office market is facing a significant slowdown in investment volumes despite some notable transactions, with mid-year figures falling below the five-year average and signs pointing to potentially lower prime yields in the coming months.
Download our Office market report below.
Retail
LETTING MARKET
The Luxembourg retail occupational market is experiencing a significant slump with low take-up and subdued activity across all segments, stabilized prime rents, and cautious consumer confidence due to ongoing economic uncertainties.
INVESTMENT MARKET
The Luxembourg retail investment market remains stagnant with minimal transactions and steady yields due to narrow investment spreads and challenging economic conditions, but there is cautious optimism that potential yield shifts could revitalize investor interest in the near future.
OUTLOOK
Despite the current stagnation and subdued activity in Luxembourg's retail market, there is cautious optimism for a potential recovery driven by improved economic conditions and anticipated shifts in yields, which could stimulate investment and rental growth in the latter half of 2024 and into 2025.
Download our Retail market report below.
