The Luxembourg office market was resilient to many pandemic concerns, and the 2022 pipeline is indicating another good year for for the office market.

The investment market has strong momentum entering 2022 from a big fourth quarter that drove CRE investment to €1.578 billion for the year. Travel restrictions have now eased, so foreign investor activity should pick up.

High street and out-of-town retail formats recorded strong demand growth in 2021. Private landlords are becoming more flexible, increasing market efficiency and helping to support a renewed optimism for a sector that has struggled.

Apartment prices continue to increase by double digits, outpacing rental growth. The top end of the market is thus stabilizing and growth cooling.