2015: record investments for the first quarter


The year 2015 gets off to a great start in terms of investments in Luxembourg. The 427 million euros estimated for the first three months of the year nearly represent 40% of the overall investment realized in 2014. The rental market is also very dynamic.



33 753 m² were rented during the first quarter of 2015. The office space real estate market remains at the same level compared to the first three months of 2014, which marked the best financial year start since the 2008 crisis. The results confirm the dynamism of the sector. The three main transactions are attributed to the financial services company BBH (Brown Brothers Harriman) in the city centre of Luxembourg with 4 906 m², Ferrero International in the airport area with 3 316 m², and Capita in the neighbourhood of Limpertsberg with 2 756 m².

More than 71 operations were registered during the period. This is the sixth consecutive quarter where the number of transactions exceeds this threshold. The average size of rented spaces is 470 m², which represents a 6.1% increase compared to the first quarter of 2014. The analysis also reveals that 42% of rentals are for spaces of less than 200 m².

Concerning the rented square meters, the city centre of Luxembourg concentrated a third of all transactions (32%) ahead of the airport area (16%), Bourmicht (10%), and the Limpertsberg (10%). The analysis in terms of activity confirms the predominance of banks and financial services with 39% of operations, far ahead of the industry (18%).

The good health of the office space real estate market is also evidenced by a new decrease in the vacancy rate, which declined to 5.14%. This decrease should continue along the year. However, the average values hide disparities. The vacancy rate is only 1.57% in Kirchberg and 3.27% in town, against 9.87% in the airport area.

A flourishing economic context

The good results of the first quarter of 2015 should be confirmed throughout the year. In fact, the national institute for statistics and economic studies of the Grand Duchy of Luxembourg (Statec) reckons on a 2.2% growth of the economy. It also notes an increase in the number of job offers and a lower unemployment. These indicators should encourage a recovery in consumption.

The flourishing economic context comes out in favour of investment. During the first quarter of 2015, 4 operations were registered and represented a volume estimated at 427 million euros. The main transaction is the selling of the Royal-Hamilius, a 36 000 m² emblematic project comprising shops, offices, and housing. It will be the new front door of the upper city of Luxembourg.

Driven by this good start, the amount of investments for 2015 will exceed again one billion euros. The demand for office spaces remains high and the new programmes that are being implemented have been long-awaited. The volume of deliveries should be 110 000 m², bringing the stock to over 3.7 millions of square meters.