From left: Nathalie Reuter of Walk the Talk (moderator), Nicolas Mackel of Luxembourg for Finance, Nicolas Sopel of Quintet Private Bank, Martine Gerber-Lemaire of Dentons and Sven Rein of Pandoo Management, speaking at Quintet Private Bank’s “Real estate: Towards a new direction” conference, 1 February 2024. Photo: Quintet Private Bank

From left: Nathalie Reuter of Walk the Talk (moderator), Nicolas Mackel of Luxembourg for Finance, Nicolas Sopel of Quintet Private Bank, Martine Gerber-Lemaire of Dentons and Sven Rein of Pandoo Management, speaking at Quintet Private Bank’s “Real estate: Towards a new direction” conference, 1 February 2024. Photo: Quintet Private Bank

Luxembourg’s real estate market should rebound this year, based on falling interest rates and improved macroeconomic conditions, Quintet Private Bank’s head of macro research has said.

The grand duchy’s “property sector appears poised for recovery in 2024,” according to Quintet Private Bank.

Luxembourg real estate prices were down year-on-year by in the third quarter of 2023, partially due to “higher interest rates”, the bank noted in a press statement. However, the European Central Bank is widely expected to cut rates in the spring or early summer and many forecasters anticipate what Quintet described as a “broader macroeconomic recovery” in 2024.

“We have already seen a rebound in listed property markets, following the earlier correction,” , head of macro research & chief strategist Luxembourg at Quintet Private Bank stated in the bank’s press release. “Physical properties may continue to face downward pressure in the short term, but expected lower interest rates should ease financial constraints and prove a tailwind for the sector.”

Sopel originally made the comments during Quintet’s “Real estate: Towards a new direction” conference on Thursday.

Quintet employs some 700 staff in Luxembourg and had total client assets of €86.7bn as of 31 December 2022.

Updated, 1 February at 4:20pm, to correct the number Quintet employees in Luxembourg. A previous version of this article omitted corporate staff.

Related articles