Lisbon Office Market

After a slower start to the year, the Lisbon Office Market is expecting a more dynamic second half.

From January to May 2023, the Lisbon office market registered a total occupancy of 35,142 sq. m, presenting the lowest results of the last 5 years. 

The cumulative take-up between January and May 2023 is 53% below the average utilisation of the last 5 years for the same period under review.

Source: Savills Research | PPI

By the end of May, 62 transactions were closed, which represents a 27% decrease compared to the same period in 2022.

Parque das Nações accounted for 26% of the take-up in this period, with a total of 7 transactions, followed by the Western Corridor (17%) and the Expansion Area (15%), with 19 and 7 transactions, respectively.

Source: Savills Research | PPI

With regard to the take-up by business sector, as expected, TMT's & Utilities represented 34% of the total in the Lisbon office zone, with 15 transactions to date, followed by Consultants & Lawyers (11%), Business Services (10%) and Construction & Real Estate (10%).

Source: Savills Research | PPI

Frederico Leitão de Sousa, Head of Offices at Savills Portugal says: “Portugal, especially Lisbon, has been showing improvements in the consumer confidence index, both from a business and consumer perspective. We believe that this more optimistic scenario will bring positive results for the office market during the 2nd half of 2023. Furthermore, we look forward to the finalisation of the projects we currently have in pipeline for the next two years, which will certainly bring a greater demand for quality and efficient spaces, reinforcing the city's dynamism and enhancing Lisbon as one of the main players in the European market.”

Porto Office Market

The Porto office market shows resilience and stability.

Porto, in turn, showed a total take-up volume, from January to May 2023, of over 20,000 sq. m. The results of these months are in line with the pre-pandemic figures.

Source: Savills Research | PPI

Until the end of May, 26 deals were concluded. The Expansion Zone, responsible for most of the occupancy in this period, represents 40% of the total take-up, with 5 transactions, followed by the Out of Town Zone (25%) and CBD Boavista (20%), with 5 and 6 transactions, respectively.

Source: Savills Research | PPI

With regard to take-up volume by business sector, Consultants and Lawyers recorded the highest take-up volume during the first 5 months of the year - reflecting 31% of the final volume, with 3 transactions - followed by the Construction and Real Estate segments (29%) and TMT's & Utilities (15%).

Source: Savills Research | PPI

“Porto's office market has been showing stable numbers, regarding the accumulated take-up from January to May, when we compare the results of these months with previous years (with the exception of 2021). Currently, we have more than 70,000 sq.m in pipeline, which will be concluded by the end of the year, of which almost 50% are concentrated in Zone 5 - Out of Town. This more stable scenario of the Porto market proves its enormous development potential and its power to attract a wide range of companies and activities”, adds Francisco Megre, Offices Consultant, Savills Portugal.