Economy: Sustained Growth And Inflation Convergence
Portugal's economic performance is expected to remain resilient in 2026 and 2027, despite a less favourable international environment. According to Moody's Analytics, GDP is projected to grow by 1.9% in 2026 and 2.0% in 2027, reflecting steady, albeit moderate, economic expansion. Growth will be driven primarily by domestic demand, while a challenging external environment is expected to continue weighing on overall economic activity. Heightened external pressures are projected to higher inflation in 2026, reaching 3.2%. As these pressures ease and labour cost growth moderates over the following years, inflation is expected to gradually converge towards the European Central Bank's target, reaching 2.1% by 2028. Labour market conditions are expected to remain favourable, with the unemployment rate forecast to decline slightly from 5.8% in 2026 to 5.6% in 2027. This reflects the continued resilience of the labour market, despite a moderation in employment growth.
Demand: First Semester Take Up Volume At 19,520 Sq.m (+80% Yoy)
The Greater Porto office market registered 15 new deals in the second quarter of 2026, with a take-up of 12,370 sq.m. The first semester volume stood at 19,520 sq.m, representing a year-on-year growth of 80%.
The largest deal of the quarter was the relocation of the SNS Headquarters to a new building located in zone 5 (Others Porto), with 6,150 sq.m., representing almost 50% of the total take up in the second quarter. This deal was followed by the lease of 2,140 sq.m. at Latino Coelho 85 by a flex office operator and by the lease of 980 sq.m at Lake Towers - Block D, by a confidential tenant.
Others Porto (Zone 5) accounted for 50% of total take-up in Q2 2026, followed by CBD Boavista (Zone 1) with 12%. In terms of sectors, the Government, Europe and Associations sector had the largest share, representing 58% of the take-up, followed by the Company Services sector with 20%.
The vacancy rate registered an increase of 0.4 p.p. when compared with the previous year, reaching 9.1%. In terms of development, 1,300 sq.m were completed in this quarter, corresponding to the Boavista Office Building (zone 1).
Looking ahead, the pipeline forecasts 120,700 sq.m to be completed within three years, with 112,200 sq.m currently under construction, of which 17% is already pre-occupied.
Rents: Vila Nova De Gaia Records The Only Prime Rent Increase
When compared with the previous quarter, prime rents in Greater Porto remained stable across most of the zones, with CBD Boavista (Zone 1) rent at €21.00 sq.m/month. Vila Nova de Gaia (Zone 8) was the only one registering an increase, reaching €15.00 sq.m/month.
