Economic Context
Luxembourg's retail market closed 2025 in a broadly stable but selective mood. Economic growth remained modest at an estimated 0.57% for the year, weighed down by softer exports and subdued investment activity, though private consumption held up thanks to wage indexations. Looking ahead, the outlook is more constructive, with GDP growth projected to strengthen to 2.29% in 2026 as financing conditions ease and domestic demand recovers.
Occupier Market
Retail leasing activity improved compared to 2024, with full-year take-up reaching 24,360 sq m across 57 transactions. The standout story of the year was the commercialisation of GRIDX, a multi-experience complex combining retail with leisure, which alone accounted for nearly 9,000 sq m and underlines the market's appetite for innovative retail formats. In H2, home & deco operators were particularly active, while the high street saw quality demand with Roche Bobois taking space at Royal Hamilius. Prime rents held steady across all segments, with no new benchmark-setting transactions to drive movement in either direction.
Investment Market
Investment activity was highly concentrated in 2025, with just two transactions totalling €188 million, both involving disposals by Nextensa, including the sale of the Batiself complex in Ingeldorf to the Luxembourg State. Rather than reflecting broad market liquidity, the year's investment volumes were driven by a single active seller. Prime yields remained stable across all segments following the repricing of recent years, and the outlook for 2026 points to continued selectivity, with activity likely to remain dependent on available product rather than a broad-based recovery in transaction flow.
