Luxembourg Property Prices Appear Poised for Recovery, Says Quintet

On Thursday 1 February 2024, Quintet Private Bank hosted a half-day panel debate on property sector outlook in Luxembourg.

In line with the 2023 global real estate correction, Luxembourg property prices declined 13.6% on an annual basis as of the third quarter of last year, impacted by higher interest rates. Nevertheless, the country's property sector appears poised for recovery in 2024, especially following European Central Bank (ECB) interest-rate cuts that are expected around mid-year. The sector should be further supported by gradually easing financial conditions and a broader macroeconomic recovery.

This was the view of Nicolas Sopel, Head of Macro Research & Chief Strategist, Luxembourg, at Quintet Private Bank, who spoke at the "Real estate: Towards a new direction" debate on Thursday. "We have already seen a rebound in listed property markets, following the earlier correction. Physical properties may continue to face downward pressure in the short term, but expected lower interest rates should ease financial constraints and prove a tailwind for the sector," he said during his panel titled "A paradigm shift in investment strategies".

Nicolas Sopel was joined on this panel by Martine Gerber-Lemaire, Head of the Real Estate Practice at Dentons Luxembourg, Nicolas Mackel, CEO of Luxembourg for Finance, and Sven Rein, Partner at PANDOO Management.

A second panel focused on potential policies that could contribute to Luxembourg's overall attractiveness, further supporting real estate prices. Participants in that panel included Jerry Grbic, CEO of the Luxembourg Bankers' Association (ABBL), Morgan Mével, Senior Investment Advisor - Capital Markets at INOWAI, Michel-Edouard Ruben, Senior Economist at Fondation IDEA, the think tank of the Luxembourg Chamber of Commerce, and Jean-Paul Scheuren, President of the Chambre Immobilière, Luxembourg's chamber of real estate agents.

More than 150 guests attended this invitation-only event at Quintet's headquarters, which was hosted by Nora Lemhachheche, Head of Wealth Management at Quintet Luxembourg. Nathalie Reuter, founder of Walk the Talk, moderated the panel discussions.

Quintet Luxembourg, a leading private bank in the Grand Duchy, is a trading name of Quintet Private Bank (Europe) SA. Quintet Luxembourg counts 300 professional staff, including 40 client advisors. Quintet Private Bank (Europe) SA, founded in 1949, is headquartered in Luxembourg and operates across Europe and the United Kingdom.