During the budget preparation for 2023, the company foresaw significant challenges. A slowdown in figures was observed from May 2022 until 2023, but with the apparent stabilization of interest rates, a prospect of recovery is emerging for the second half of the upcoming year.
In the commercial real estate sector, a gradual improvement in prospects is anticipated. Institutional investors are showing renewed interest in the real estate market, which could translate into a resurgence of transactions towards the second or third quarter of the next year.
As for residential real estate, hopes are pinned on further price decreases to become more attractive to investors. However, it will take about six months to see a significant difference in the figures.
In the construction sector, despite encountered challenges, a certain level of optimism persists. Delays remain long due to disruptions in material supply, but a stabilization of prices is observed, which is positive.
The importance of reintroducing projects to the market and preparing them for sale is emphasized. Three focal points are mentioned: Luxembourg City and its surroundings, the northern region of Nordstad, and the broader southwest, including Esch-sur-Alzette, where development opportunities are being considered.
In summary, there is a degree of optimism regarding future prospects, while remaining mindful of the challenges to overcome in the various real estate sectors.
