Tiny Luxembourg, with a miniature financial center and a limited number of rental properties, is still attractive for London firms that will open their offices here after Brexit.
“At the beginning, we asked ourselves – is there enough office space in the country and can we adequately respond to high demand?” – says Juliet Pillo, an Inowai real estate agent. “And they got worried.” The good news, he said, is that it is quite easy to find an office with an area of 500 square meters, and the bad news is that large office space in and around the city center is not enough to meet demand, writes the newspaper Breaking news.
This means that firms that are looking for large spaces may have to pay attention to the outskirts of the city, as well as to small suburbs, in which, as it turned out, there are not only a gas station, restaurant or supermarket. And, according to the source, many rooms are already reserved before they are put into operation.
Currently, four kilometers south of the center of Luxembourg, in the district of Cloche d’Or, a new project is being implemented in a neighborhood in which it is good to live and work. Office premises, a residential area, shops, a large shopping center, schools, and a new railway station will be built here. In total, it will accommodate 30,000 people.
The problem is that the project is planned to be completed only in 2025. And this is already six years after the Prime Minister of Great Britain Theresa May reached her goal. To date, more than 30 financial companies, mainly insurers and asset managers, are ready to search for premises in Luxembourg.
At the same time, Statistical Bureau of State notes that today, thanks to Brexit, 250 new jobs have been created in the country. And it estimates that eventually 3,000 new full-time positions may be formed.
Meanwhile, Gilles Bindels, chief executive officer of the investment company for real estate in Luxembourg, noted that among his clients there are no companies changing their location to the periphery of the capital as a result of Brexit. In addition, Brexit did not have a big impact on rent, but competition for the best places in the central business district of the city in the first 15 years gradually increased the monthly cost per square meter – from € 26 to € 50.
Moreover, such a high cost, according to Bindels, will not deter Londoners. Despite the fact that rental rates have gone down, nevertheless, a square meter in central London Mayfair costs € 110 per month. In the City, renting costs around € 78 per square meter, and around € 45 per dock.