Research
Luxembourg Office Market -
Q4 2022
A transition year
February 06, 2023
Contributors:
- Pierre-Paul Verelst
A transition year for the Luxembourg office market
- A significant decline of occupier take-up in 2022 due to quasi absence of transactions above 10,000 sq.m. and the subdued economic context. 2023 seen returning a better level of occupier demand.
- Vacancy did not change compared to 2021 at 3.5% and remains the lowest in Europe.
- Rents increased in several districts such as CBD, Kirchberg, Cloche d’Or and City Belt compared to 2021.
- An unusually poor investment activity. ESG-compliant assets and value-add lead the market.
- Yield shift recorded across all asset classes, in line with sharply rising financing costs amid ECB and Fed multiple rate hikes.
