M A R K E T B E AT
Luxembourg Retail Market Retail Q3 2021
YoY Chg
12-Mo. Forecast
23,080
Take-Up YTD (sq m)
Luxembourg economic growth returning as expected to pre crisis level. After a limited decline in 2020, the real GDP growth is expected to bounce back to 6.92% on an annual basis in 2021, one of the most important recoveries across Europe. Though decelerating in the medium term, GDP growth should remain above 5% in 2022 and reach 2.50% in 2025.
54
Deals YTD
140 EUR/sq m/m.
-
Prime rent High Street
3.75%
Prime Yield (3/6/9 Lease)
Sentiment indicators also suggest a positive outlook for Luxembourg’s economy. Business sentiment has improved, also outside the financial services sector. Consumer sentiment, meanwhile, showed a strong recovery since spring 2021, after the dramatic fall recorded between March and the end 2020. Consumers are more confident about the economic recovery of the country. However, they are more concerned about their financial situation and their willingness to spend also decreased these last months. Inflation is projected to rise to 2.25% in 2021 due to oil price increases, the introduction of a carbon tax, the rebound in consumption, and base effects linked to the introduction of free public transportation in 2020. However, this pressure on prices is expected to be temporary and to ease as from 2022. Consequently, inflation is expected to decline to 1.56% in 2022 and 1.35% in 2023.
ECONOMIC INDICATORS Q2 2021
5.88%
YoY Chg
12-Mo. Forecast
Unemployment Rate 2021
-15 -20
20 25
20 24
20 23
20 22
Un empl oymen t rate
-30 01 -2 07 01 3 -2 01 01 3 -2 07 01 4 -2 01 01 4 -2 07 01 5 -2 01 01 5 -2 07 01 6 -2 01 01 6 -2 07 01 7 -2 01 01 7 -2 07 01 8 -2 01 01 8 -2 07 01 9 -2 01 01 9 -2 07 02 0 -2 01 02 0 -2 07 02 1 -2 02 1
GDP Gro wth
20 21
-25 20 20
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.
-10
20 19
Source: Moody’s Analytics, Statec.lu, Eurostat
0 -5
20 18
Inflation for 2021
5
20 17
2.25%
Consumers’ confidence index
8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% 20 16
GDP Growth for 2021
GDP Growth (LHS) and Unemployment rate (RHS)
20 15
6.92%