On Thursday, the Luxembourg real estate firm Inowai held its annual conference in Kirchberg, a suitable location at this neighbourhood will see an important phase of development during 2016 as the milestone of one million square metres built will be passed.

The INOWAI annual conference attracted an audience of circa 100 industry professionals from Luxembourg and abroad, and included a presentation of the outlook for the housing market in the Grand Duchy.

The expected construction projects in 2016 confirms the attractiveness of Luxembourg in 2015 which experienced a record year in the real estate business industry, both in terms of taken occupations (+ 49.9%) and investments (+ 16.7%). The office leasing market ended 2015 on a new level in the Grand Duchy with 308,754 m². This is explained by the realisation of exceptional operations, like the university Belval (79,600 m²), rental made by the European institutions (EC and EIB at 62,500 m²) and deliveries of new headquarters of Arendt & Medernach (16,700 m²), Ernst & Young (15,200 m²) and the Financial Sector Supervisory Commission (14,000 m²).

More than 40 real estate transactions last year were for areas of more than 1,000 m². Overall, 263 transactions were recorded last year, representing about one per working day.

The investment market was also very dynamic in 2015. It stood at €1.26 billion in real estate offices. For the second year since 2008, the billion euros milestone has been attained. This excellent result is explained by favourable economic conditions. In 2015, an additional 116,290 m² of offices were built. This year, 130,000 m² are expected.

The milestone of 4 million m² will be passed next year, doubling in fifteen years. This growth underscores the attractiveness of Luxembourg. Demand for investment products is very strong, but has relatively low supply. That is why the announced projects are expected with some impatience, especially in Kirchberg district for which INOWAI has recently published a special brochure.

Lighthouse One & Infinity

"Kirchberg is seeing a great development. Its land reserves provide for a very promising future growth," said Vincent Bechet, Managing Director of INOWAI, associated with several major construction projects in the business district of Luxembourg. INOWAI has an exclusive mandate with the construction group Giorgetti to market the office building Lighthouse One, to be available at the end of 2016. Its privileged location is on the top of the Kirchberg plateau offering exceptional views of the city of Luxembourg and its surroundings. The contemporary architecture gives the project a lot of elegance. 15 stories tall, the Lighthouse One construction totals 14,000 m2, with floors of 866 - 1,430 m².

INOWAI has also collaborated with the developer Allfin for the INFINITY project on the creation of a mixed-use project comprising a shopping  centre, offices, services and housing. This project initiated by the Fonds d’Urbanisation et d’Aménagement du Plateau du Kirchberg (FUAK), will be erected between the Philharmonie and the European Court of Justice for completion in 2018.

These flagship projects testify to the dynamism of Kirchberg which is experiencing a continuous and sustained growth. This year it will pass the one million m² built with demand remains strong. As proof, the vacancy rate (1.72%) is the lowest in the Grand Duchy.

Designed as a business area, the Kirchberg plateau has added very diverse urban functions over the years. It now has health, sports and cultural facilities, including the Museum of Modern Art (MUDAM) and the European Convention Centre. This evolution of the city is analysed by LISER (Luxembourg Institute of Socio-Economic Research), as explained by one of its researchers, Julien Licheron, who was invited to present its work by INOWAI. The development of mixed housing-office-shopping is clearly a strategic axis for Kirchberg.

The speakers included Vincent Bechet, Managing Director & Partner INOWAI; Dr Julien Licheron, Team Leader Housing Observatory LISER; Jean-Nicolas Montrieux, COO INOWAI Residential; Julien Pillot, Head of Office Agency INOWAI; Tehdi Babigeon, Head of Business Development INOWAI; and Jean-Marie In, Head of Retail Agency INOWAI.

Photos by Geoff Thompson (above): Julien Pillot, INOWAI; (below, L-R): Julien Licheron, LISER; Vincent Bechet, INOWAI