Fewer empty offices in Luxembourg
2013 will be the best year for sales of office space in Luxembourg since 2007, a report from a major estate agency suggests.
In an office occupancy report, Property Partners said that total sales from offices since the beginning of the year reached 467 million euros.
This was comparable to 2012's total revenues, Property Partners said, suggesting 2013 will record the best results in six years.
Overall office occupancy saw positive growth in the third quarter with average vacancy rates at below 5 percent, marking an 18 percent improvement since last year.
Vacancy rates were as follows:
- Luxembourg City 3.36 percent;
- Kirchberg 1.54 percent;
- City Centre 2.61 percent;
- Station area 4.36 percent;
- Cloche d'Or 5.9 percent;
- Bertrange-Bourmicht industrial estate 23.54 percent;
- Howald industrial estate 3.8 percent;
- Esch-sur-Alzette industrial estate 5.46 percent.
The results show a real recovery since the 2008 financial crisis in Luxembourg. Property Partners said in a press statement: “By recording a vacancy rate of under 5 percent, the real estate market for offices is showing a dynamism which hints in the coming months of an upward pressure on rents in the downtown area.”
Luxembourg continues to invest in office real estate and opened 12,300 m2 of office space during the third quarter of 2013.
This incorporated two office buildings which are fully rented. They bring the total office stock up to 3.46 million m2, marking a 2.9 percent rise in one year.