Summary and analysis of Luxembourg's current office real estate market conditions.
A recovery supported by financial institutions and pr-elettings in projects directly connected to the tramway network.
Recently completed projects fill up, vacancy consequently declines back to below 4% again.
Prime rents ended unchanged at city level at €54/sq.m./month, whilst average rents positive trajectory with a 6% increase to a new high of €34.8/sq.m./ month.
Investment volume rises with a mix of core and non-core transactions. Yields have compressed in 2025 to 4.5% and are seen stabilizing at that level in 2026.