The latest analysis by Savills reveals that the Lisbon and Porto office markets achieved record growth from January to September 2024. During this period, the Lisbon office market recorded a total occupancy of 168,546 sq m, marking the second-highest occupancy rate ever registered for this period, only surpassed by 2022. Porto, in turn, recorded a total occupancy volume exceeding 55,000 sq m from January to September 2024, reflecting its best results to date.

Lisbon

The transacted area in Lisbon during the first 9 months of 2024 is 134% higher than the total occupancy recorded between January and September 2023 and 30% above the five-year average for the same period. By the end of September, 128 transactions were completed, representing a 15% increase compared to the same period in 2023

Parque das Nações accounted for 32% of the absorption volume during this period, with a total of 19 transactions, followed by the New Office Zone (25%) and the Western Corridor (15%), with 18 and 34 transactions, respectively. 

In terms of absorption volume by business sector, Financial Services led the market until September, with a total transacted area of 54,572 sq m, representing 32% of the total absorption volume in the Lisbon office market, with 12 transactions. TMTs & Utilities followed with 18%, and Other Services with 16%.

Frederico Leitão de Sousa, Head of Offices at Savills Portugal, states: “Although expected, this is excellent news for the office market. This year, we have already surpassed pre-pandemic figures, and by the end of 2024, we are likely to reach record take-up levels. This once again demonstrates the resilience of our market and our position as a preferred destination for major international companies. We expect this positive momentum to continue delivering strong results in the final quarter, with the potential to reach 200,000 sq m of total absorption by the end of the year. Additionally, we eagerly await the completion of projects in the pipeline, totalling around 56,000 sq m by the end of 2024, a significant portion of which is already pre-let. We therefore anticipate a very active last quarter with notable transactions.” 

Porto

Porto, in turn, recorded a total absorption volume exceeding 55,000 sq m from January to September 2024, reflecting the city’s best results to date. With this figure, the Porto office market demonstrated a 47% growth compared to the average absorption volume of the last 5 years. By the end of September, 53 deals were completed, representing a 10% increase compared to the same period in 2023.

The Out of Town zone, accounting for most of the occupancy during this period, represents 40% of the total absorption volume, with 16 transactions, followed by the Boavista Prime CBD (37%) and Downtown CBD (14%), with 22 and 6 transactions, respectively.

In terms of absorption volume by business sector, TMTs & Utilities recorded the highest occupancy volume during the first three quarters of the year, reflecting 39% of the final volume, with 21 transactions, followed by the Consulting & Legal segments (29%) and Financial Services (14%). 

“The Porto office market has been gaining increasing prominence, and with one quarter still to go, we have already surpassed last year’s absorption volume. In 2024, we recorded the best absorption results ever for the period between January and September, compared to previous years, and we entered this new quarter with higher demand, especially for area expansions, which makes us believe that year-end figures will exceed those of the previous year. This year, to date, 7 buildings have been completed, offering 26,565 sq m, and we have close to 85,000 sq m in the pipeline until the end of 2025. Porto continues to demonstrate its great growth potential and attractiveness,” says Graça Ribeiro da Cunha, Offices Consultant, Savills Portugal.