Regarding retailers, those active in the clothing sector were the most proactive with 16 transactions. Cushman & Wakefield also indicated that the restaurant sector had bounced back with 13 transactions. Photo: Romain Gamba / Maison Moderne

Regarding retailers, those active in the clothing sector were the most proactive with 16 transactions. Cushman & Wakefield also indicated that the restaurant sector had bounced back with 13 transactions. Photo: Romain Gamba / Maison Moderne

Transactions in Luxembourg's commercial property sector went up by 36% last year, according to Cushman & Wakefield and the real estate services firm expects rents to stagnate this year.

With 76 transactions recorded, 2021 has brought back some colour to commercial real estate with 2020 being marked by uncertainty against the backdrop of the outbreak of the covid-19 health crisis.

These 20 additional transactions have resulted in a 38% increase in the surface area occupied by shops reaching a total of 30,900m2. The opening of the shopping centre Escape in Capellen was one of the notable developments in the sector in 2021. While in the city centre, the retail fabric was expanded, particularly thanks to the

Regarding retailers, those active in the clothing sector were the most proactive with 16 transactions. Cushman & Wakefield also indicated that the restaurant sector had bounced back with 13 transactions. We can see evidence of that in the opening of new spots by Subway, O'Tacos or , as well as local artisanal chain .

“This sector is expected to perform strongly in the coming years, as a result of changing consumer habits and the increasing willingness to spend money on things rather than buying them,” stated Cushman & Wakefield.

Rents expected to stabilise in 2022

For a shop in the city centre, the prime price of rent reached €140 per month per m2 excluding VAT the end of the year, six times more than on the outskirts of the capital where it the price stands at €22  per m2. In shopping centres, this price ranges around €90 per m2. Cushman & Wakefield expects costs to stabilise this year before going up in 2025 when out-of-town retail is expected to grow by around 18%. For investors, this type of space offers the best yield, at around 6%, as do locations in shopping centres.

It should be noted that on the transaction front, the past year has been rather quiet with around €80m in investments, including the €70m part of the sale of Cora Foetz by the Louis Delhaize group to a private investor.

In its report, Cushman & Wakefield mentions “a lack of opportunities" on the Luxembourg market and points to the as proof of this, which is the first city centre transaction since 2018.

This story was first published in French on . It has been translated and edited for Delano.