Luxembourg Office Market Dynamics, Q1 2026

Weak demand: Take-up volume dropped 37% year-on-year to just 24,779 sq.m. due to geopolitical tensions, with only a few notable transactions including SS&C's 2,011 sq.m. letting in Kirchberg and La Mondiale's 3,073 sq.m. extension in Bertrange.

Tight supply conditions: Vacancy improved to 3.6% from 3.9% with no new completions, while prime CBD rents held at €54/sq.m./month and city-wide average rents reached a new high of €35.6/sq.m./month.

Limited investment activity: Only one significant deal occurred—the State's acquisition of Edison 2 for redevelopment into Luxembourg's third European school, while the outlook suggests continued rental growth driven by inflation and construction cost pressures.