The industrial and logistics sector in Portugal continues to show resilience, characterised by strong economic fundamentals and an acute shortage of high-quality supply. Whilst the overall volume of new leasing activity has eased, rent growth remains robust, signalling intense competition for prime space, especially in the Greater Lisbon and Greater Porto areas.
Economic Context
Portugal’s economy is forecast to grow by 1.7% in 2025, with further acceleration in subsequent years, supported by resilient domestic demand and improving exports. Inflation is expected to moderate, holding at 2.4% in 2025 before stabilizing at 2.0% in 2026 and 2027. Unemployment continues its downward trend, falling from 6.1% in 2025 to 5.7% in 2026, reaching its lowest level since 2001.
Demand Overview
Leasing activity during the third quarter registered 19 new deals, encompassing a total of 161,600 sq.m. The accumulated take up until September stood at 361,900 sq.m, which is a 29% drop year-over-year as occupiers faced fewer options and uncertainty in the broader economic landscape. Demand remains heavily concentrated in the country’s two major logistics hubs: Greater Lisbon accounted for 55% of the totaltake up , with Greater Porto taking 43%.
Key transactions this quarter included:
- A major 57,290 sq.m built-to-suit project for a confidential occupier at Panattoni Sta. Maria da Feira.
- The acquisition of a 17,370 sq.m facility at Quinta da Velha (Loures).
Major players securing space included Hychem, Midsid, and Wegeuro. The average deal size was a substantial 7,100 sq.m, indicating strong demand from larger occupiers.
Vacancy Rate and Supply Shortage
The tight supply environment continues to define the market. The vacancy rate in Greater Lisbon was unchanged at 4.2% quarter-over-quarter. This stability is less a sign of equilibrium and more a strong indicator of the persistent lack of modern, well-located supply.
Rent Growth Momentum
Prime rents continued their climb, hitting €5.60/sq.m/month in Greater Lisbon and €5.80/sq.m/month in Greater Porto. Both prime and average rents rose across most zones, reflecting the fundamental imbalance of robust demand meeting extremely limited supply.
Future Supply
A total of 584,300 sq.m of logistics space is currently planned for completion over the next three years, with 410,000 sq.m presently under construction.
Significant projects expected to deliver include:
- Lisbon North Logistics Platform (Phase III)
- Malveira Prime Logistics
- Panattoni Park Lisbon-City
During Q3 2025, the Maia Logistics Platform (6,200 sq.m) was successfully completed and brought to market.
