A look back at the second edition of the B17 Real Estate Round Table by INOWAI: ‘2024 real estate market – is the recovery underway?’

Last week, INOWAI had the pleasure of hosting the second edition of the B17 Real Estate Round Table, a flagship event this year. In partnership with Indosuez Wealth Management, the event brought together more than 100 guests, including real estate sector experts and business leaders. The objective? To review the state of the real estate market on the brink of recovery.

We were honoured to welcome three influential personalities to lead the discussion:

• Anne Toledano, Global Head of Real Estate at Indosuez Wealth Management,
• Michèle Detaille, honorary president of FEDIL and corporate governance expert,
• Christophe Nadal, co-founder of real estate funds and Chairman of the Supervisory Board at MIMCO Asset Management.

Moderated by Tehdi Babigeon, Partner and COO of INOWAI, the speakers exchanged views on the key questions facing the market today. They explored topics such as the challenges for a sustainable recovery, the importance of innovation, and the outlook for various market segments.

Where does the real estate market stand today?

During the first edition, the real estate market was going through a period of uncertainty, marked by a tense electoral situation, persistent inflation, and high interest rates. One year later, although the market remains in transition, there are some encouraging signs. Electoral reforms are starting to take effect, but challenges remain.

The new residential market is still struggling, with a 47% drop in transactions in the first quarter of 2024 compared to the previous year. Conversely, the existing home market is seeing a 24.5% increase in transactions, driven by a nearly 22% drop in prices.

In the office market, the sector shows signs of weakness, with only 65,000 m² of office space leased in the first half of the year, compared to 240,000 m² in 2023. The vacancy rate has reached 4.5%, a figure to keep an eye on.

Real estate investment is also slowing down, with €260 million invested in the first half of the year, a situation similar to 2023. However, some indicators suggest that we may have reached the bottom, with a gradual recovery on the horizon.

Innovation at the heart of the recovery

Beyond the numbers, innovation is emerging as a key factor in driving a sustainable recovery in the real estate market. New solutions, such as “rent to buy” financing models or initiatives like PROLOG, are helping to promote homeownership. In the office market, a “flight to quality” trend is becoming apparent, with growing demand for innovative and high-performing buildings.

In Luxembourg, price adjustments in the residential market have been slow, with developers counting on a future drop in interest rates to boost investment. Innovation will also be essential in addressing sustainability and low-cost construction challenges, which are crucial for overcoming environmental and economic obstacles.

In conclusion

While the real estate market remains under pressure, there are signs of a slow and uneven recovery across different segments. Innovation will be crucial in adapting the supply to market needs, whether in terms of quality, accessibility, or sustainability.

We would like to thank our speakers and partners for this enriching discussion full of insights and solutions. See you next year for another edition of the B17 Real Estate Round Table!