Office Market – Analysis of results February 2023

Lisbon office market with a slow start of the year


In the accumulated period of the first two months of the year, the Lisbon office market recorded a total take up volume of approximately 8,000 sq. m., the lowest value in the last 5 years. A total of 22 operations were closed, with the CBD (zone 2) and West Corridor (zone 6) zones accounting for 60% of the total number of operations and 57% of the total take up volume.

“The results of this start of the year were expected. We know that in 2023 the scenario will be different, considering that in 2022 almost 50% of the take up volume was due to pre-let operations, and the market is still short of quality supply for immediate occupancy”, asserts Frederico Leitão de Sousa, Head of Corporate Solutions at Savills Portugal. Regarding the volume of take up by sector of activity, the sector of Other Services, TMT’s & Utilities and Financial Services stands out, with a weight of 63% in the total absorption volume.

Porto Office Market begins recovery


In the Porto office market, the total take-up volume for the first two months of 2023 was 6,881 sq. m., a very significant increase of 166% when compared to the same period of 2022. The result achieved is 50% of the average of the last 5 years for the same period. In the total of the two months, 11 operations were registered, with the CBD Boavista and Out of Town zones accounting for 80% of the total volume of absorption.

In the words of Francisco Megre, Consultant of the Office Department in Porto at Savills Portugal: “The results of these first two months prove that the Porto office market remains on a strong trajectory of growth and consolidation and allows us to forecast that 2023 will have behind it the shyest results of the last two years. The entrance of new projects that excel in modernity and innovation, combined with the already attractive character of this market, has been the ideal combination to attract a very diverse range of companies.”