On Tuesday 26 January 2026, real estate services company JLL published its report on Luxembourg's office market during 2025.

According to JLL, Luxembourg’s office market experienced several challenging years but 2025 showed a notable recovery. Transaction volumes remain below long-term averages, yet the overall trend points to renewed activity and investor confidence. JLL noted that after two lean years, office take-up grew 36% to 181,160 m², JLL reported. 

Jonathan Morand, Director Office Agency at JLL Luxembourg, said: “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.” 

JLL highlighted that major transactions included JP Morgan’s 14,000 m² lease at The Waves in Kirchberg and PwC’s pre-lease of 9,970 m² in the Eosys project at Cloche d’Or. The report also detailed that new “Grade A” buildings accounted for 65% of transaction volume, up from 56% in 2024 and aligned with the five-year average. Notable projects included BPI’s Kronos at Kirchberg, where law firm Linklaters leased 5,468 m² last summer following KPMG’s 2023 occupancy. JLL said that modern, high-quality office space continues to attract the majority of market activity.

JLL BeLux’s Research team reported that in total 108,000 m² of office space was delivered in 2025, including SkyPark’s second phase (23,000 m²) near Luxembourg airport, The Waves (14,000 m²) and Sekoia (18,000 m²) in Luxembourg-Kirchberg. 

Pierre-Paul Verelst, Head of Research at JLL BeLux, said: "Today we estimate rental vacancy at 3.9%, slightly down from 4.2% recorded in both 2023 and 2024. This decline shows the market is absorbing new deliveries well, maintaining availability at one of Europe's lowest levels.”

JLL said that while “prime” rents on Boulevard Royal remained unchanged at €54/m²/month, other central districts had recorded growth. Rents in Luxembourg-Gare rose 7.5% to €43/m²/month, matching Luxembourg-Kirchberg, which increased 2.3%, and Cloche d’Or in Luxembourg-Gasperich rose nearly 8% to €41/m²/month, and Luxembourg-Howald benefited from tram network connectivity which helped rents climb 10% to €33/m²/month, while airport-adjacent districts increased 8% to €34.5/m²/month.

According to the report, Luxembourg’s investment market also showed improvement, with €839 million invested across all asset classes, a 38% annual increase, approaching the five-year average of €847 million. 

Vincent Van Brée, Head of Capital Markets at JLL BeLux, said: "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. 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."

Emna Rekik, Country Lead and Head of Markets at JLL Luxembourg, said: "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 […] International investors have understood this well and are regaining confidence."