The flexible office market in Portugal has entered a new phase of expansion, driven by hybrid working, the vitality of the business sector and a clear trend towards decentralisation, according to the report Beyond the Office: Portugal’s Flexible Work Revolution, prepared by Savills, which analyses this evolution and highlights the main trends in the sector.

According to Savills Portugal, Lisbon and Porto currently account for 150,000 square metres and around 20,000 workstations in coworking spaces and flex offices, supported by an annual growth rate of over 20% since 2018.

Alexandra Gomes, Head of Research at Savills Portugal, states:
“The estimates gathered confirm that Portugal – and, in particular, Lisbon and Porto, as the main urban centres and hubs of business activity – has experienced significant growth in the flexible space ecosystem.”

Portugal stands out in Europe due to structural factors that reinforce its competitiveness: it is a safe country, well positioned among foreigners’ preferred destinations and offers a good work-life balance. Lisbon continues to be one of the most affordable capitals in Europe, making it highly attractive to companies seeking to reduce costs without losing centrality.

Why Portugal: quality of life and competitiveness

From an economic perspective, the country is consolidating its position as an innovative market, with a strong focus on innovation and a favourable environment for entrepreneurship, with Lisbon standing out as a European startup hub. With skilled talent, growing technology and competitive costs, Portugal offers ideal conditions for companies seeking agility and innovation.

Between 2024 and the first half of 2025, Lisbon recorded strong momentum in this segment: around 40% of transactions were relocations and 27% expansions, while 20% corresponded to the entry of new companies, which use coworking as a fast entry point into the city.

Savills’ study shows that small and medium-sized enterprises, particularly in the technology, media and telecommunications sectors, are leading demand for plug-and-play solutions in central areas. This trend is also reflected in deal sizes: 82% of transactions involved up to 50 workstations, confirming the predominance of small, agile teams.

Who is investing in flex?

Flex offices, once associated mainly with freelancers and startups, have become part of the strategy of large corporations seeking more agile and competitive models. This shift, combined with greater attention to ESG criteria, wellbeing and decentralisation, is accelerating the adoption of hybrid and technology-driven solutions, opening the door to new concepts in Lisbon and Porto, as well as in cities such as Braga and Aveiro.

In this context, the office is no longer just a physical space and becomes a strategic asset: an environment that promotes collaboration, wellbeing and productivity, supported by technology and sustainable practices.

In addition, flexible models allow companies to avoid initial investment in fit-out and equipment, preserve liquidity and reduce the risk associated with long-term leases in more uncertain scenarios.

Frederico Leitão de Sousa, Head of Offices at Savills Portugal, adds:
“Flexible and coworking spaces in Portugal, particularly in Lisbon and Porto, show very high occupancy rates, driven by demand from large companies that want to test markets and working models without taking on long-term commitments. At the same time, financial factors have gained relevance, as many contracts are recorded as services rather than lease liabilities, removing debt from the balance sheet and benefiting company valuations, especially in high-growth sectors such as technology or gaming.”

In light of these changes, Portugal emerges as one of the most promising markets for flex offices in Europe. By combining quality of life, competitive costs and a growing business ecosystem, the country is well positioned to lead the next phase of workplace transformation.