Luxembourg is among the most attractive European cities

According to the Emerging Trends in Real Estate: Europe 2018 report, the capital of the Grand Duchy is among the top ten cities for real estate investment and development.

07-villeThe annual report Emerging Trends in Real Estate Europe, published by the Urban Land Institute and PwC, ranks real estate markets in European cities according to their investment and development prospects. Luxembourg City, assessed for the first time in this report, has worked its way up to 9 th place and thus enjoys an exhilarating start.

A stable and expansionist economy

The authors of the study underline that it is mostly thanks to Luxembourg's high GDP growth of 4%, a stable economy and an open market that more and more international companies are considering investing in the country. Taking into account its attractive and strong financial sector, the capital of the Grand Duchy can even position itself as a very attractive alternative to the City of London.

Luxembourg City's other strong points include major investments in industrial sites, data processing centres and logistics. On the other hand the high cost of living and concerns related to infrastructure, a potential lack of housing and educational institutions are the main concerns for investors. Finally, due to returns that are considered to be low, Luxembourg's real estate market is generally considered as difficult by investors.

German competition

Already for the fourth time running, Berlin heads the top of the list, followed by Frankfurt and Copenhagen, which share second place. In total, German cities represent half of the top 10 European cities.

The Emerging Trends in Real Estate: Europe 2018 report is based on the responses of over 800 real estate professionals, including investors, property developers, creditors, real estate agents and consultants.

(Article written by the editorial team of the portal)

  • Updated 08-11-2017