Luxembourg: an attractive city
For the first time ever, Luxembourg City enters Emerging Trends Europe ranking in ninth spot.
With GDP growth of 4 percent, pro-business officials and a professional and transparent market, more and more international firms are willing to invest in the country. With Brexit in the air, the capital of the Grand-Duchy has turned out to be a very attractive alternative for London as mentioned by respondents of the survey.
Luxembourg is also growing its economy with major investments, among others, in industrial sites, data centres and logistics.
But this country of 590,000 people is expensive to live in and there are possible issues with infrastructure, because there may not be enough residential and schools planned to accommodate a large influx of new businesses. Luxembourg is also hard to place capital into for real estate investors. Yields are low for a small market, but "they are supported by the trend of the economy and the tight market", says a fund manager.