M A R K E T B E AT
LUXEMBOURG Office Q3 2021
YoY Chg
12-Mo. Forecast
320,081
Luxembourg economic growth returning as expected to pre crisis level.
Take-Up YTD (sq m)
Economic growth is set to increase by 6.92% in 2021, one of the most important economic recoveries across Europe. In longer term, growth levels will decelerate, though remaining robust, to reach 2.50% in 2025.
52 With the GDP growth beyond expectations, there is a decrease in the unemployment rate this year. In Q3 2021, the unemployment rate has declined to 5.88% and it should continue to decrease to around 5.20% in 2022 and 2023. Employment grew substantially in 2021, up to 3.3% representing 8,600 new jobs this year.
Prime Rent, (EUR/sq m/ month)
3.57% Vacancy Rate
Core inflation in Luxembourg stands at 2.25% in Q3 2021. It is projected at 1.56% in 2022 and 1.35% in 2023.
3.50%
Predicting the return to the office.
Prime Yield (3/6/9 Lease)
According to Cushman & Wakefield’s Predicting the return to the office report1, in Europe 40% of the workforce had returned to the office as of September, and it is expected that the majority will return in early 2022 with potential positive impact on the office occupational market.
ECONOMIC INDICATORS Q3 2021 YoY Chg
12-Mo. Forecast
5.88%
1. https://www.cushmanwakefield.com/en/insights/predicting-the-return-to-the-office
Unemployment Rate 2021
6.92% GDP Growth for 2021
2.25% Inflation for 2021
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
EVOLUTION RATE OF OFFICE EMPLOYMENT
8%
5.0%
7%
4.5%
6%
4.0%
5%
3.5%
4%
3.0%
3%
2.5%
2%
2.0%
1%
1.5%
0%
1.0%
-1%
0.5%
-2% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GDP Growth
Unemployment rate
0.0% 2016
2017
2018
2019
2020
2021
2022
2023
2024
2025