Luxembourg Office Market Dynamics, Q4 2024
Summary and analysis of Luxembourg's current office real estate market conditions.
- Pierre-Paul Verelst
- Emna Rekik
- Vincent Van Brée
2024 closed slightly below expectations on the occupier side, with Banking & Finance and the State of Luxembourg being the most active occupiers during the past 12-months. A rebound of activity is expected in 2025, again with the State of Luxembourg and European institutions taking large surface areas.
Vacancy declined slightly vs. Q3 to 4.2%, due to the low level of speculative completions being absorbed by demand. Looking at planned completions for 2025, a moderate increase in vacancy is anticipated.
Prime rents ended unchanged in most districts. 2025 is expected to be characterised by rising rents across all districts due to persistently high construction costs and more dynamic occupier activity.
