Property market

Research Report Q1 2019

In a nutshell

Inflation Population

Q4 2018 Q1 2019 Q4 2018 Q1 2019 2,1% 2,2% 602.500 614.000

Structure of GDP by output Industry Agricultural 11,6% 0,3%

Services 88,1% €

GDP Increase Unemployment Rate

+ 2,5% 5,4% Office Q1 2019

Take-up (in m²) Number of Deals

2017 2018 2019 & Average Size per Deal

300.000 2017 2018 Q1 2019

250.000

200.000 245.561 218.368 150.000 Average Size: Average Size: Average Size: 100.000 m² m² 761 883 344 m² 75.663 50.000 46.469 Volume: Volume: 17.526 51 0 287 278

Q1 Q2 - Q4

Total Investment Prime rent (€/m²) Number of transactions Volume Lux (€) (excl. V.A.T.) > 1,000 m²: 58 Mln 50 4

Stock (m²) Prime yield Office Vacancy rate 4 Mln 4% % 3.4%

Prime rents (€/m²) Take-up by sector (excl. V.A.T.) Insurance & Pension Funds Legal Activities Periphery Kirchberg 6% 4% 22,5 36 Other 8%

CBD Manufacturing 50 Station Banking & 11% Finance 35 43% City Belt Real Estate Activities

28 Cloche d’Or/ 11% Esch/Belval Gasperich/Howald Business Services 24 30 17% Retail Q1 2019

Yearly Take-Up (year-to-date)

2017 2018 Q1 2019

Take-Up (m²) 48.200 37.650 4.994

Number of Deals 70 74 15

Average Size per Deal (m²) 680 509 306

Prime Rent (€/m²) Prime Rent (€/m²) Prime Rent (€/m²) High Street Shopping Centres Retail Warehousing (excl. V.A.T.) (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 (m²) 5Y Q1 Number of Transactions

35.000 30 31.304 30.000 20 20 20

25.000 5 year average 15 15 15 14 20.000

15.000 5 year average 11.524 10 9

10.000 7.849 5.656 4.594 5 5.000 2.905

0 0

Q1 2019 Q1 2014 Q1 2015 Q1 2016 Q1 2018 Q1 2019 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2017 Residential Q1 2019

Sales of Appartments Sales of Houses Average price per m² Average price per m2

2016 5.590 2016 4.124 Country 2017 5.783 Country 2017 4.274 Q2 2018 5.976 Q2 2018 4.419

2016 6.062 2016 7.731 Luxembourg Luxembourg 2017 6.825 2017 8.237 City City Q2 2018 7.064 Q2 2018 8.856

Average selling price of existing apartments (from notarial acts)

country average: 5.002 €/m2

Junglinster Lorentzweiler insuffisant sales volume less than 4 000 €/m²

Mamer Strassen from 4 000 to 4 499 €/m² Lenningen Luxembourg-Ville Leudelange from 4 500 to 4 999 €/m² Roeser from 5 000 to 5 999 €/m²

more than 6 000 €/m² 5 key Q1facts 2019

The1. 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.

2.Favourable tax 3.Companies from environment is Banking & Finance sector boosting service sector dominate the total size of transactions and keeps transaction volume pressure on an already in Q1 2019. low vacancy rate

The4. first quarter has been also 5.For STATEC, Luxembourg low for Retail transactions which will need between are at a record 2 , 4.994 m low 243.000 and 324.000 more than 50% under new unifamilial apartments the 5Y average topped by before 2060. 31.304 m2 in Q1 2017. 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 Lotfi Behlouli HEAD OF MARKETS DIRECTOR OFFICE LUXEMBOURG LUXEMBOURG +352 46 45 40 72 +352 46 45 40 58 [email protected] [email protected]

Robby Cluyssen Vincent Van Brée SENIOR CONSULTANT HEAD OF CAPITAL MARKETS RESIDENTIAL AGENCY LUXEMBOURG LUXEMBOURG + 352 46 45 40 35 +352 46 45 40 52 [email protected] [email protected]

Stéphane Colle SENIOR ANALYST RESEARCH BELUX +352 46 45 40 [email protected]

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