Luxembourg
Property market Research Report Q1 2019
In a nutshell Inflation
Population
Q4 2018
Q1 2019
2,1%
2,2%
Q4 2018
Q1 2019
602.500 614.000 Structure of GDP by output
Industry
11,6%
Agricultural
0,3%
Services
88,1%
€ GDP Increase
Unemployment Rate
+ 2,5%
5,4%
Office Q1 2019
Number of Deals & Average Size per Deal
Take-up (in m²) 2017
2018
2019
300.000
2017
2018
Q1 2019
250.000
245.561
200.000
218.368 150.000
Average Size:
50.000
Average Size:
761 m²
100.000
75.663
46.469 17.526
0
Q1
883 m²
Volume:
Volume:
287
278
Prime rent (€/m²)
58 Mln
50
Stock (m²)
Prime yield Office
4 Mln
4%
4
%
Insurance & Pension Funds Kirchberg
36
CBD
Esch/Belval
24
3.4%
Other
Legal Activities
6% 4%
8% Manufacturing
Station
35
City Belt
28
Vacancy rate
Take-up by sector
(excl. V.A.T.)
50
51
Number of transactions > 1,000 m²:
(excl. V.A.T.)
Prime rents (€/m²)
22,5
344 m²
Q2 - Q4
Total Investment Volume Lux (€)
Periphery
Average Size:
11%
Banking & Finance
43%
Real Estate Activities Cloche d’Or/ Gasperich/Howald
30
11% Business Services
17%
Retail Q1 2019
Yearly Take-Up (year-to-date)
Take-Up (m²)
2017
2018
Q1 2019
48.200
37.650
4.994
70
74
15
680
509
306
Number of Deals Average Size per Deal (m²)
Prime Rent (€/m²)
Prime Rent (€/m²)
High Street
Prime Rent (€/m²)
Shopping Centres
(excl. V.A.T.)
Retail Warehousing
(excl. V.A.T.)
(excl. V.A.T.)
2017
130
2017
110
2017
20
2018
130
2018
110
2018
20
Q1 2019
150
Q1 2019
110
Q1 2019
20
5Y Q1 Take-Up 35.000
5Y Q1 Number of Transactions
(m²) 30
31.304
20
30.000 20 25.000 15
20.000
5 year average
15.000
11.524
7.849
10.000
2.905
5.000
5.656
5 year average
15
5
19 20 Q1
18 20 Q1
17 20 Q1
16 20 Q1
15 20 Q1
14 20 Q1
19 20 Q1
18 20 Q1
17 20 Q1
16 20 Q1
20 Q1
20 Q1
15
0
14
0
15
14
9
10
4.594
20
Residential Q1 2019
Sales of Appartments
Sales of Houses
Average price per m²
5.590 5.783 5.976
2016
Country
2017 Q2 2018
Luxembourg City
Average price per m2
2016
Country
Q2 2018
7.731 8.237 8.856
2016 2017 Q2 2018
2017
4.124 4.274 4.419
2016
Luxembourg City
2017 Q2 2018
6.062 6.825 7.064
Average selling price of existing apartments (from notarial acts)
country average:
5.002 €/m Lorentzweiler
Junglinster
2
insuffisant sales volume
Steinsel
Kopstal Walferdange Niederanven
less than 4 000 €/m²
Mamer
Strassen Sandweiler Bertrange Luxembourg-Ville Contern Hesperange Leudelange
Lenningen
from 4 000 to 4 499 €/m² from 4 500 to 4 999 €/m²
Roeser
from 5 000 to 5 999 €/m² more than 6 000 €/m²
5 key facts Q1 2019
1.
2.
The first quarter of 2019 has been very quiet. With only 17.526 m2 of Take-up, we are far from the record high 75,663 m² of 2017. But as reminder, 2018 started also very slowly and became a record year.
Favourable tax environment is boosting service sector transactions and keeps pressure on an already low vacancy rate
4.
The first quarter has been also low for Retail transactions which are at a record 4.994 m2 low, more than 50% under the 5Y average topped by 31.304 m2 in Q1 2017.
3.
Companies from Banking & Finance sector dominate the total size of transaction volume in Q1 2019.
5.
For STATEC, Luxembourg will need between 243.000 and 324.000 new unifamilial apartments before 2060.
Offices Luxembourg Atrium Business Park 41 Rue du Puits Romain L-8070 Bertrange - Luxembourg T: + 352 - 46 45 40 www.jll.lu
Contacts Angélique Sabron HEAD OF MARKETS LUXEMBOURG +352 46 45 40 72 Angelique.Sabron@eu. jll.com
Lotfi Behlouli DIRECTOR OFFICE LUXEMBOURG +352 46 45 40 58 Lotfi.Behlouli@eu. jll.com
Robby Cluyssen SENIOR CONSULTANT RESIDENTIAL AGENCY LUXEMBOURG +352 46 45 40 52 Robby.Cluyssen@eu. jll.com
Vincent Van Brée HEAD OF CAPITAL MARKETS LUXEMBOURG + 352 46 45 40 35 Vincent .VanBree@eu. jll.com
Stéphane Colle SENIOR ANALYST RESEARCH BELUX +352 46 45 40 Stephane.Colle@eu. jll.com
www.jll.lu / Jones Lang LaSalle © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof. © pictures : Foster+Partners/Tétra kayser