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One month after MIPIM, announcements, buzz and expected narratives have given way to a more lucid, and often more revealing, reading of market dynamics. What do industry players actually retain from this edition? Based on insights from LuxReal board members present in Cannes, five key takeaways now stand out more clearly.

1. The return of pragmatism

In a market shaken by crisis, previous MIPIM editions offered little cause for optimism. This year, however, a shift in mindset could be observed. Market participants appeared more constructive, driven by a shared willingness to get the market moving again. “We observed a more proactive attitude. Stakeholders were less waiting on others and more willing to re-engage, to unlock a market that remains under pressure,” explains Romain Muller (NR Real Estate).

The industry seems to have embraced a simple reality: waiting for perfect conditions is no longer an option. This renewed pragmatism remains cautious, however, as geopolitical tensions continue to weigh on sentiment. “Investors remain cautious and are still adopting a wait-and-see approach on many transactions. However, capital is still available and highly selective, primarily targeting assets offering strong visibility on cashflows and execution,” notes Tehdi Babigeon (INOWAI).

2. Increasingly contrasting market dynamics

MIPIM once again highlighted the growing divergence between markets. “Internationally, many markets have undergone faster and more significant price adjustments, which has helped restore momentum and allow transaction to resume,” says Tehdi Babigeon. This dynamic has not been observed in Luxembourg, where a sharp price correction is neither realistic nor desirable. “International observers see Luxembourg as a solid market, but one that is dependent on the public sector and constrained by high costs,” explains Tom Lessel.

In this context, recovery will rely more on gradual adjustments. “This means acting on supply side,” Tehdi Babigeon adds, “for instance by realigning land prices with current market conditions or introducing incentives to sell; otherwise market activity is likely to remain constrained.” For Tom Lessel, “administrative simplification and digitalisation are also key to accelerating projects and improving market transparency.”

3. More demanding investors

Discussions in Cannes confirmed a clear shift in investor behaviour. “Investors are now prioritising well-structured projects backed by reliable stakeholders,” says Tom Lessel (BIL).

Requirements have strengthened significantly:

• asset quality
• energy performance
• ESG integration
• cashflow resilience

As a result, selectivity has increased. “While price and returns remain key criteria, increased selectivity has made the market more polarised, with a stronger focus on asset quality, liquidity and cashflow visibility,” confirms Tehdi Babigeon. Well-structured projects continue to attract interest. And in some cases, they are already paving the way for future transactions.

4. Luxembourg: Caught between stability and competitiveness

Among investors showing renewed interest in real estate at MIPIM were family offices. According to Romain Muller, they “are primarily focused on capital preservation rather than development or speculation, favouring stable markets with strong fundamentals.”

Luxembourg, known for its stability, might seem well positioned to benefit from this trend. However, this strength is also becoming a limitation. “Rents have remained relatively high in Luxembourg, unlike in other markets where they have significantly adjusted. As a result, investors may shift towards markets offering stronger revaluation potential and higher yields,” he explains.

“For now Luxembourg is perceived as a secondary market, with limited depth and relatively low returns,” adds Tehdi Babigeon.

5. New practices and uses reshaping the market

Finally, MIPIM highlighted several structural trends that could inspire the Luxembourg market.

“In many mature markets, institutional investors are strongly positioning themselves in Build-to-Rent, supported by adapted frameworks such as long-term tax incentives, planning bonuses and better access to land,” explains Tehdi Babigeon.

Office-to-residential conversions are another key trend. “In several major cities, converting buildings, particularly offices into residential, and simplifying change-of-use processes allow supply to better match demand,” he adds.

“Luxembourg could stimulate its market by accelerating such conversions and developing integrated urban projects,” notes Tom Lessel. In addition, logistics and digital infrastructure, particularly data centres, represent further opportunities.

These developments, already well underway in other markets, provide valuable directions to support the transformation of Luxembourg’s real estate sector.

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