M A R K E T B E AT
LUXEMBOURG Office Q1 2022
YoY Chg
12-Mo. Forecast
71,257
YTD Take-Up (sq m)
Luxembourg inflation hits all-time high. The consumer price index in Luxembourg is forecasted to climb to 6.04% in 2022, a record peak. In February 2022, the Russian invasion of Ukraine pushed global energy prices sky-high. With the conflict showing no signs of ending, and EU restrictive measures against Russia, energy prices will continue to drive inflation in Luxembourg. Combined with the fact that consumer spending is set to increase after a record year of saving, inflation is set to rise.
52
Prime Rent, (EUR/sq m/ month)
3.99%
Vacancy Rate
A period of uncertainty is taking place with the crisis in Ukraine and if it continues, Luxembourg’s economic growth could be affected.
3.40%
Rising growth and falling unemployment rate.
ECONOMIC INDICATORS Q1 2022
Luxembourg’s economy is forecasted to grow 2.71% in 2022. This is expected to slow down and stabilise at 2.48% for the next year and slow down further to 1.76% in 2024. This growth is associated with a decrease of the unemployment rate. Due to the fact that an important quantity of previously temporarily unemployed individuals have returned to the workforce in early 2022, the unemployment rate decreased to a level of 4.67% in the first quarter. However, it should be expected to increase further and stabilise around 4.90% by the end 2022 and 5.01% in 2023.
Prime Yield (3/6/9 Lease)
4.67%
YoY Chg
12-Mo. Forecast
Unemployment Rate
2.71%
2022 GDP Growth
6.04%
Consumer Price Index
Source: Moody’s Analytics, STATEC Lux, Eurostat Please note the economic data can vary significantly from one source to the other. Therefore, the figures provided should merely be used as an indication or trend.
GDP GROWTH AND UNEMPLOYMENT RATE
INFLATION RATE
8%
7%
6%
6%
4%
5%
2%
4%
0%
3%
-2%
2%
-4%
1% 0%
-6% 20 16
20 17
20 18
20 19
GDP Gro wth
20 20
20 21
20 22
20 23
20 24
Un empl oymen t Ra te
20 25
2016
2017
2018
2019
2020
2021 in fl ation
2022
2023
2024
2025