Luxembourg, January 27, 2026 – Luxembourg’s office market has experienced several difficult years with transaction volumes significantly below usual standards. 2025 appears to demonstrate a fairly clear improvement. JLL’s research team analyzes the major trends. Here are the key takeaways from the past twelve months.
Market Recovery Driven by Project Take-Up: After two years that could be described as “lean,” Luxembourg’s office market is rebounding with 36% growth in take-up to 181,160 m². This performance should be nuanced as transaction volume remains 26% below the 5-year average. “The market is primarily driven by its occupiers, led by the financial sector which represents 30% of demand. Adding business services and law firms, these key sectors concentrate 49% of activity,” explains Jonathan Morand, Director Office Agency at JLL Luxembourg.
By choosing 14,000 m² in The Waves project at Kirchberg, JP Morgan signed the year’s flagship transaction, followed by PwC’s pre-lease of 9,970 m² in the Eosys project at Cloche d’Or. Another highlighted project is BPI’s Kronos at Kirchberg: after KPMG in 2023, law firm Linklaters signed for 5,468 m² last summer.
As usual, new buildings (“Grade A”) largely support demand with 65% of transaction volume, up from 56% in 2024 and similar to the 5-year average.
Decline in Availability JLL BeLux’s Research department inventoried office deliveries in the Grand Duchy: over the past twelve months, nearly 108,000 m² was completed, including nearly a quarter with SkyPark’s second phase (23,000 m² at the airport). The two other large deliveries were located at Kirchberg: The Waves (nearly 14,000 m²) and Sekoia, the extension of BGL BNP Paribas offices (18,000 m²).
Overall, Luxembourg’s office stock remains stable around 4.6 million m², with deliveries offset by demolitions or renovations of obsolete buildings to bring them to current standards.
“Today we estimate rental vacancy at 3.9%, slightly down from 4.2% recorded in both 2023 and 2024,” analyzes Pierre-Paul Verelst, Head of Research at JLL BeLux. “This decline shows the market is absorbing new deliveries well, maintaining availability at one of Europe’s lowest levels. In volume, slightly less than 180,000 m² is vacant in Luxembourg, with one-third being ‘Grade A,’ meaning the highest technical and functional quality.”
Rent Convergence in Central Districts While “prime” rents near Boulevard Royal remained unchanged at €54/m²/month, we observe a significant increase in other central districts now showing nearly the same rent. In the Station district, rents climbed 7.5% to €43/m²/month, the same level as Kirchberg which rose slightly (+2.3%). Same trend at Cloche d’Or with nearly 8% increase to €41/m²/month. There is therefore convergence of rental values in the 3 main central districts, excluding Boulevard Royal surroundings.
More impressive is Howald’s progression: now connected to the tram network, this district saw rents progress 10% annually to €33/m²/month, bringing 5-year growth to 32%. Same trend at the airport: in 2025 rents increased 8% to €34.5/m²/month, with spectacular 5-year progression of +30%.
In other districts, stability prevails, notably in Periphery and Belval where “prime” rents remain at €24/m²/month.
Investment: More “Core” Transactions and Private Investor Support Investment activity rebounded after two difficult years in 2023 and 2024. However, transaction volume has not yet fully returned to normal but is approaching it. Across all asset classes, we recorded €839 million in investment, a 38% annual increase. The previous five-year average transaction volume was €847 million, which can be qualified as a new equilibrium.
The notable development was greater asset diversity in transaction volume distribution. Alongside offices representing 54% of total, retail follows with 22%, logistics with 15%, and finally residential with 9%.
Focusing on offices, JLL advised the year’s main transactions, allowing it to display the number 1 leader position across all asset classes. In the first half, a family office acquired Charlotte 10 (CBD, 4,800 m²) and Vertbois (Kirchberg, 4,500 m²) buildings. These two “core” buildings are leased to top-tier tenants, Clifford Chance and Julius Baer respectively. At year-end, JLL also advised on UniCredit’s headquarters sale at Kirchberg to LLC Real Estate, which will handle its renovation.
Regarding “prime” office yields, Luxembourg was among the first European markets to record compression compared to last year. For central districts, the “prime yield” tightened by 25 bp to 4.50%, in line with the European average.
“Thanks to these new benchmarks, we now have visibility on exit yields, meaning the returns developers can expect when selling their projects. Conditions are therefore met for more liquidity in all segments,” states Vincent Van Brée, Head of Capital Markets at JLL BeLux. “We also expect more diversity in business sectors. While offices have traditionally largely dominated investment transactions in Luxembourg, retail and the ‘Living’ segment are again promised a strong 2026.”
In Conclusion: Emna Rekik, Country Lead and Head of Markets JLL Luxembourg, concludes: “There were many uncertainties both economically and geopolitically in 2025. It’s highly likely this will still be the case in 2026. Nevertheless, we approach the new year with optimism: we have a strong transaction pipeline, owners have understood they must invest in bringing their portfolios to standards, and the government is conducting infrastructure work that supports our market. I’m thinking particularly of tram network extension. International investors have understood this well and are regaining confidence.”