Savills has launched the latest edition of its “Business Migration” study, which aims to understand whether companies tend to stick to their original location or venture into other market areas when looking to relocate or expand their activity.

For this study, 201 operations in the Lisbon office market and 76 operations in the Porto office market were analysed.

It is very evidente that office spaces are undergoing a significant transformation in the wake of the pandemic. More than ever, companies recognise the crucial need to create appealing and safe work environments that promote teamwork, stimulate creativity and are a mirror of the company’s values and culture.

According to Frederico Leitão de Sousa, Head of Offices at Savills Portugal: “Location continues to be an extremely important criterion. By carefully considering geographical proximity, accessibility and the surrounding service network, companies can ensure that they choose an office space that, besides meeting their operational needs, also attracts and retains the best talent”.



Lisbon Office Market

In the Lisbon office market, the Prime CBD Zone (Zone 1) has the highest loyalty rate. This means that 73% of the companies that moved their offices in 2022 chose to remain in the same area. Recognised for its excellence and strategic positioning, the Prime CBD Zone, in the heart of Lisbon, attracts renowned national and international companies. The centrality and convenience factors are among the most attractive in this market zone, where the prime rent is around €26/sq. m/month.

With regard to activity expansion movements, it should be noted that the Prime CBD Zone (Zone 1) consistently maintains its leadership, with 88% of the companies that decided to expand their operations in 2022 choosing to do so within the same market zone. It is also interesting to highlight that the Historic and Beira Rio Zone (Zone 4), presented a percentage of 77% of companies that chose to expand within their home market zone.

Alexandra Portugal Gomes, Head of Research at Savills Portugal, highlights: “the willingness to stay within the same market zone suggests that businesses prize the benefits and advantages offered by these specific areas. Whether it’s proximity to a comprehensive network of services and transport, proximity to target customers or prestige of buildings, these market areas clearly provide an environment conducive to growth and development for these companies.”

84% of the companies that chose to establish their operations in Parque das Nações in 2022 were from the Western Corridor (Zone 6), highlighting the attractiveness and appeal of this zone in particular for companies dedicated to Financial Services, TMT’s & Utilities and business services. Additionally, the report revealed that 78% of the companies that decided to expand their operations to Parque das Nações were originally based in the CBD Zone (Zone 2). This data suggests that companies highly value the growth potential, modernity and innovation offered by the new projects emerging in this part of the city.



Porto Office Market

In Porto’s dynamic and competitive office market, the movements and preferences of companies in relation to their areas of origin are evident. The study found that when it comes to expanding their activities, 100% of the companies with origins in the Boavista CBD are have once again chosen the Boavista CBD are as their preferred location. This unwavering commitment to their home area says a lot about what makes this area so appealing to businesses, namely the centrality and prestige factors.

A similar trend can be noticed in the Downtown CBD Zone, where firms that have moved premises or expanded their operations unequivocally choose to remain in the same area.

When analysing the movements of New Companies, it becomes evident that certain zones have a significant attraction, namely Other Zones and the CBD Downtown stand out as the market zones that verify the highest percentages of attraction of New Companies, with 49% and 46%, respectively. These zones reveal themselves as a promising market for start-ups.

“The Boavista CBD for a matter of accessibility, services offer and location, having the highest concentration of more recent buildings in Porto, continues to be in fact the preferred area. However, due to the lack of available buildings with size and amenities (in this area), areas such as Matosinhos Sul are preferred by many companies, in order to retain talent taking into account factors such as proximity to green areas and the sea, as well as accessibility and transport", adds Graça Cunha Offices Associate from Savills | Porto Division.

The study also addresses the trend and increasing proliferation of coworking spaces, which has been a direct result of significant changes in work models following the Covid-19 pandemic.

With companies adopting more hybrid and flexible working models, the demand for Coworking spaces has skyrocketed. Noticeably, the cities of Lisbon and Porto have emerged as the biggest magnets for digital nomads, further intensifying the pressure for the expansion of these types of spaces in these areas.

Having become a technological hub, the city of Lisbon has a wide offer of coworking spaces, with around 125 units spread across the city, offering different features for every need and taste. The city of Porto has also embraced the trend and has already 47 coworking spaces that stand out for their high quality.

Alexandra Gomes Portugal, Head of Research at Savills Portugal says: “in this third edition of the study, it was once again evident that companies establish a strong, close connection with their areas of origin. However, as we witness the emergence of new projects that mark a turning point in modernity and innovation, companies are increasingly willing to explore beyond their area of origin.”