Chapter 1


Luxembourg Real Estate Market Outlook 2023

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The CRE investment market had a fairly slow 2022, with a total volume of €1 billion euros. Limited activity in mid-cap transactions was the difference maker compared to recent years. 2023 is also forecast to be moderate given the macro environment. High inflation has driven central banks to increase interest rates, driving yields higher as assets are repriced accordingly. The extent to which yields increase is heavily dependent on central bank activity. They are likely to be under upward pressure for much of 2023.

Luxembourg CRE investment deal by volume size

Investment graph