• In Lisbon, the total take-up volume between January and May 2024 (118,786 sq m) more than tripled compared to the same period in 2023 (34,739 sq m)
• In Porto, the take-up volume in the cumulative period from January to May 2024 was 27,214 sq m, 36% more than the same period last year

The latest analysis by Savills of the office markets in Lisbon and Porto reveals that, up until May 2024, this sector has sustained a robust growth trajectory in the two main cities of Portugal.

Lisbon

From January to May 2024, Lisbon recorded a total take-up volume of 118,786 sq m, more than tripling the 34,739 sq m verified during the same period in 2023. In total, 72 transactions were closed within this timeframe, representing a 20% increase compared to the corresponding period in 2023. The Parque das Nações area, with 48,233 sq m, and the New Office Zone, with 28,042 sq m, achieved the best performances, collectively accounting for 64% of the overall take-up volume.

During this period, 21 transactions exceeding 1000 sq m were documented, totalling 100,069 sq m, significantly higher than the figures observed in the same period of 2023. Flexible spaces constituted 6.8% of the total take-up volume during this cumulative period.

The financial sector was responsible for 43% of the closed transactions, while the TMTs & Utilities sector represented 18%.

Prime rents remained stable at €28/m²/month, positioning Lisbon once again as one of the European cities with the most competitive prime rents, rivalling markets such as Athens, Prague, and Warsaw.

Frederico Leitão de Sousa, Head of Offices at Savills Portugal, comments: “The growth of the office market in Lisbon since the beginning of the year has been remarkable compared to the previous year. An increase of more than 300% in take-up volume is indeed impressive and highlights the significant dynamism observed in this city. These figures recorded between January and May lead us to believe that 2024 will be a very positive year and demonstrate the capital’s substantial capacity to attract both national and international companies.”

Porto

In Porto, the office market registered a total take-up volume of 21,284 sq m for the cumulative period from January to May 2024, reflecting a 36% increase compared to the same period in 2023.

A total of 38 transactions were completed within this timeframe, marking a 46% increase compared to the previous year.

The Matosinhos area, representing 38% of the total take-up volume, boasts the highest accumulated take-up volume during this period with a total of 10,327 sq m. This is followed by the CBD Boavista area, with a total take-up volume of 9,141 sq m across 19 transactions, and an average occupied area of 481 sq m.

During this period, the Porto office market continued to attract a growing number of new companies (up 61% from the previous year), underscoring its increasing appeal, particularly for the TMT sector, which accounted for 52% of the take-up volume in the period under review. Prime rents remained stable at €19/m²/month.

Graça Ribeiro da Cunha, Offices Associate at Savills Portugal | Porto Division, underscores: “The growth in take-up volume observed in the first five months of the year is indicative of Porto’s significant dynamism and attractiveness. This is also reflected in the rising number of new companies from strategic sectors that continue to choose the region for their operations.”