The office market in Lisbon and Porto is strongly recovering, with a significant increase in take-up. In the first half of the year, Lisbon saw 122,600 sq.m taken up, surpassing the total volume for all of 2023 by 9%. Porto saw 28,400 sq.m transacted, a 13% year-on-year increase. This was influenced by large transactions, with the top three deals representing half of Lisbon’s total volume and one-third in Porto, showing that market dynamics depend on the availability of significant areas in quality buildings.
Pedro Salema Garção, Partner and Head of Offices at Cushman & Wakefield Portugal, commented that “demand for large office areas remains active, and the introduction of new high-quality buildings is essential to energize the market. Qualified supply is crucial to meet tenants needs and ensure rapid occupancy, especially in prime zones”.
Projections indicate an occupation volume of around 200,000 sq.m by year-end in Lisbon and approximately 65,000 sq.m in Porto. Prime rent is expected to rise slightly in Porto to €20/sq.m/month, stabilizing at €28/sq.m/month in Lisbon.
Cushman & Wakefield was involved in major transactions in both Lisbon and Porto markets during the first half of the year, including Caixa Geral de Depósitos’ purchase of the WellBe building in Lisbon and the leasing of the Matosinhos Office Center in Porto. The consultancy held a market share of 30% in Lisbon and 24% in Porto and expects to maintain this position by the end of 2024.
