By the end of the month of January 2019, the contracted office area summed up to approximately 9.400 sq m, a contraction of about 32% once compared to the same period in 2018.
“The year of 2019 kicks off with a downtrend in the occupation activity. This was already expected due to the lack of supply in the market, consequently affecting the results for the current year. Nevertheless, the market has registered 3 operations above 1,000 sq m, which have increased a list of occupations majorly dominated by spaces below 500 sq m” mentioned Alexandra Portugal Gomes, Analyst in the Research Department of Savills Portugal.
2019 starts with a total of 9.400 sq m in hired office spaces
Along the first month of 2019, there were 12 verified operations, less 6 than the number of transactions in the same month of 2018.
Zone 2 (CBD) stands out as the zone with the best performance, totalling 5,494 sq m of occupied spaces, in which an operation of 3,579 sq m belongs to Savills Portugal. In the remaining market zones, there was a slight depreciation in general regarding occupation, where Zone 4 (Secondary Office Zone), Zone 6 (Western Corridor) and Zone 7 had no register of office transactions in the first month of 2019.
The activity sectors “Company Services” and “TMT’s & Utilities” where the most active services, occupying 4,691 sq m and 2,007sq m respectively.
According to Rodrigo Canas, Director of Offices Department in Savills Portugal, these two sectors of activity have been “the main determinants of the office market in Lisbon and it is expected that they maintain their level of impact. Even though there has been a notorious decrease in the supply of offices this year, the market in Lisbon will continue to be in the preference list in terms of location for a vast number of international firms.
The question now relates to the timing for the entrance of new projects which won’t be as immediate as the demand for occupation."