Engel & Völkers Licence Partner Luxembourg > Blog > 2020 - A year full of challenges also for the real estate industry

2020 - A year full of challenges also for the real estate industry

2020 was full of challenges. The COVID-19 pandemic still has a firm grip on our social as well as economic lives. Especially retail, the hospitality sector, and the cultural scene have been hit hard. But the real estate industry has also been strongly affected. 

In Luxembourg, particularly the rental sector suffered from the effects of the pandemic. Lockdowns, curfews, and especially the restricted mobility, deterred foreign tenants from seeking a new home in the Grand Duchy.

Real estate continues to gain in value

The situation was different for the sale of real estate. The constantly high demand coupled with a stagnating supply is reflected in the price situation. In 2020, property prices in Luxembourg were relatively stable and even rose further in some locations. Many property buyers are drawn to the countryside. Houses with a garden or flats that have a balcony are preferred. The reason for this is the COVID-19 pandemic and the lockdowns it caused. 

Outlook 2021: Engel & Völkers in growth and investment phase

The high demand is also reflected in Engel & Völkers' year-end figures. "Our turnover has increased by almost 50% compared to the previous year. A highlight that we would not have expected at the beginning of the pandemic," says Philipp Niemann, Managing Director of Engel & Völkers Luxembourg. The Luxembourg branch of the Hamburg-based real estate company is also aiming for this trend in 2021.

A good turnover naturally also includes a special team. "For us, motivated and qualified employees are the core of our success," says Philipp Niemann. "That's why we intend to almost double our team in 2021. We are starting the new year with new colleagues, fresh energy and determination to continue our successful course."

"As an international brand, we see great potential in the Luxembourg real estate market. We appreciate the Grand Duchy's great flexibility to adapt to crises and changes and to create added value for itself, its citizens and the economy," he says.

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Press Release - January 2021

John Philipp Niemann - Managing Director

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