Focus on Luxembourg's business districts to set up your headquarters

Luxembourg's office real estate market remains dynamic, given the state of its economy. While the capital is developing new urban hubs, connected to high-performance mobility infrastructures, areas close to the borders are also gaining in attractiveness. Here's a quick look at some of the locations most appreciated by business players. 

At the heart of Europe, Luxembourg boasts an economic and demographic dynamic that is the envy of many. This is also reflected in the office real estate market. Businesses continue to thrive, and to reflect on their needs in terms of office space. This impetus, combined with market activity, is a source of opportunities for many players wishing to relocate or expand their premises.

Let's explore the various districts and their respective advantages.

1. La Cloche d'Or, the capital's new business district

In the south-west of Luxembourg City, La Cloche d'Or is emerging as a new business district, which in recent years has attracted a number of major players in the consulting, auditing, financial services and banking sectors. This recent district, whose first buildings were erected in the mid-2010s, is growing rapidly. It combines office, residential, retail and leisure facilities in a subtle and balanced way. 

This lively district attracts businesses looking to offer their employees easy access and numerous nearby services (concentrated in and around the Auchan shopping center).

The arrival of the tramway in 2024, connecting it directly to the nearby Howald station and the rest of the capital, further enhances its appeal.

2. Kirchberg, at the heart of the Financial Center 

Luxembourg City's main business district, the Plateau du Kirchberg, is today home to the major players in the financial center. Alongside European institutions, it is home to major banks, prestigious law firms, asset managers and service providers to the fund industry. 

Avenue John-F. Kennedy seduces with its prestigious character. Its attractiveness continues to thrive. Available space, increasingly scarce, remains fiercely sought-after. For more than thirty years, the neighborhood has continued to develop. Buildings that become available today will be renovated to meet today's market standards. 

The tramway, which already serves the Plateau, will connect directly to Findel in a few months' time. The extension of the line to the airport should make the area even more attractive to major international players.

3. The city center and train station districts, between prestige and accessibility

The city center and railway station areas of Luxembourg are still particularly popular with players, for a number of reasons. 

The city center (CBD) remains a prestigious location. It is appreciated for its central location. It meets the expectations of companies wishing to take advantage of the strong brand image associated with Luxembourg. Companies looking for small surface areas, between 100 and 300 m², can find interesting opportunities in this district.

In recent years, the Station district has become increasingly attractive, thanks to its easy access by public transport and its proximity to the city center. Several projects in the area are contributing to its revival.

4. Belval, a dynamic district in the south of the country

Away from the capital, Belval is a location being seriously considered by a growing number of economic players to set up their offices. The district, which straddles the municipalities of Esch-sur-Alzette and Sanem, is undergoing intense development. 

Long considered a hub for knowledge and research, and home to the University and several of Luxembourg's major R&D organizations, it is now attracting a growing number of companies. In the Square Mile, a dedicated business zone at the heart of this district redeveloped on a former industrial site, some 200,000 m² of floor space are due to be delivered by 2027. 

Decentralized from the capital, the area attracts businesses which do not need to welcome customers, such as the back offices of financial institutions or large firms. Companies can take advantage of the large surface areas available for moderate rents, compared with those charged in the capital. Another advantage of the area is its proximity to the French border. By positioning themselves in Belval, companies can more easily attract cross-border talents, significantly reducing their commuting time.

5. The attractiveness of towns surrounding Luxembourg City

The towns directly connected to Luxembourg City are highly sought-after by businesses that want to offer their employees easy access to the office by car, and for whom a location within the city of Luxembourg is not a requirement. These companies prefer a higher parking ratio than in the capital, where parking spaces are increasingly scarce, to the prestige of an address or access to a wide range of services. 

Among these communes, Howald is proving increasingly attractive to companies looking to set up in Luxembourg. Located at the junction of the Cloche d'Or and Bonnevoie districts (Luxembourg), this area will soon be served by the tramway. The site is set to undergo a profound transformation, benefiting from a new development dynamic.

6. The development of business hubs along the borders: a new trend  

An increasing number of companies, with a view to retaining and attracting talent more easily, are looking to develop hubs close to the borders. This is one of the effects of the post-covid era. In Luxembourg, since the use of homeworking is restricted for cross-border workers, due to tax and social security constraints, employers are seeking to offer their employees greater flexibility in a variety of ways.

Among the options being explored by many players is to offer workspaces close to their staff's homes, in other words, close to the borders. 

Setting up these hubs is by no means easy. Firstly, because the space available is often limited. Secondly, they involve additional costs in terms of space occupancy, layout and management. Finally, it means rethinking the organisation to be able to accommodate employees and monitor teams when they are spread over several sites. 

It will be interesting to see how this trend will evolve over time.

Would you like further advice on Luxembourg's business locations or do you have any other questions? If so, do not hesitate to contact our Office Leasing team.