Q4-2021 | Retail Marketbeat | Luxembourg

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M A R K E T B E AT

Luxembourg Retail Market Retail Q4 2021

YoY Chg

12-Mo. Forecast

31,495

Luxembourg’ economy performs better than forecasted. In 2021, economic growth increased to close to 7% which means that for the first time since the outbreak of the COVID-19 pandemic, the pre-crisis level of economic activity was reached and even exceeded. Growth levels should stabilise to 2.5% in 2022 and 2023 and around 2.7% in 2024 and 2025.

Take-Up 2021 (sq m)

76

# Deals 2021

The unemployment rate stood at 5.6% in the last quarter and is expected to stabilise around 5% in 2022 and 2023.

140 EUR/sq m/m.

Inflation on the rise in 2022.

-

3.75%

Prime Yield (3/6/9 Lease)

ECONOMIC INDICATORS Q4 2021

5.6%

YoY Chg

Core inflation in Luxembourg stands at 2.2% for 2021 and is projected to increase sharply to 3.3% in 2022 before observing new decline to 1.4% in 2023. This is due to the fact companies are confronted with rising commodity prices which puts pressure on their price paid by the end consumer. Combined with the fact that consumer spending is set to increase after a record year of saving, inflation is set to rise. Consumers’ confidence on the downside in Q4.

12-Mo. Forecast

Unemployment Rate 2021

6.9%

GDP Growth for 2021

2.2%

Inflation for 2021

Source: Moody’s Analytics, Statec.lu, 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.

After having increased sharply from February to September 2021 on the back on the back of a successful vaccine rollout in Luxembourg, along with the relaxing of constraining measures surrounding COVID-19, consumer confidence index is again on the downside since October. The Luxembourgish population is more cautious namely due to the different variants of the COVID outbreak and growing energy prices. GDP Growth (LHS) and Unemployment rate (RHS)

Consumers’ confidence index 5

8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3%

0 -5 -10 -15 -20 -25 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 GDP Gro wth

Un empl oymen t rate

-30 01 -2 0 07 15 -2 0 01 15 -2 0 07 16 -2 0 01 16 -2 0 07 17 -2 0 01 17 -2 0 07 18 -2 0 01 18 -2 0 07 19 -2 01 019 -2 0 07 20 -2 02 01 0 -2 0 07 21 -2 0 01 2 1 -2 0 22

Prime rent High Street


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