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Luxembourg : take-up holds well - Q1 2013

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A research produced by DTZ

Luxembourg : take-up holds well - Q1 2013

With the economic climate still in a sluggish state, the Luxembourg commercial real estate market began the year with a take-up of 27,740 sq m. This is a similar level as recorded for the same period in both 2011 and 2012 with 25,360 sq m and 24,270 sq m respectively.

Immediate supply currently stands at around 224,000 sq m with a vacancy rate of 6.6%, this level has remained stable for the last year. This rate should fall slightly during the course of the year.

The prime rent remained at €480 per sq m per year for new, high-end buildings in the city centre. Due to falling vacancy rates in some districts, landlords are now less inclined to offer incentives and therefore find themselves once again in a stronger position when negotiating leases.

Around 60,000 sq m of new office space will come onto the market in 2013, approximately 30,000 sq m of this has already been pre-let. Due to the lack of supply and the frequent mismatch between the quality of available buildings and occupier expectations, there is a growing trend towards pre-leasing for developments currently under construction.

Source : DTZ (Groupe UGL)

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Keywords : DTZ