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
The Porto office market recorded a significant recovery in Q3 2025, with take-up reaching 17,740 sq.m across 17 deals—more than double the previous quarter. However, the year-to-date total of 27,293 sq.m is still 54% below the same period in 2024. Major transactions included Mota Engil’s 8,670 sq.m owner-occupation at M-ODU building (zone 4) and a 3,450 sq.m lease by a confidential tenant at Menéres 612 (zone 6). The Oriental submarket (zone 4) led activity, accounting for nearly 50% of Q3 take-up, followed by Matosinhos (zone 6) with 26%. Sector-wise, Other Services dominated with 49% of take-up, and Consulting and Legal sector represented 23%.
Vacancy Rate
The overall vacancy rate in Greater Porto decreased by 0.4 percentage points from the previous quarter to 8.5%, with CBD Boavista (zone 1) at 7.6%, CBD Downtown (zone 2) at 5.7%, and Matosinhos (zone 6) at 10.9%.
Rent Trends
Prime office rents remained stable across all submarkets in Q3 2025, with the t prime rent in CBD Boavista (zone 1) at €21.00/sq.m/month.
Pipeline
No new office buildings were completed in Q3 2025. The development pipeline anticipates 107,160 sq.m of new space to be delivered within three years, with 89,160 sq.m currently under construction—of which 31% is already pre-let. Major ongoing projects are concentrated in CBD Downtown (zone 2), ZEP (zone 3), Oriental (zone 4), and Matosinhos (zone 6).
