The first quarter of 2024 was marked by significant recovery in the take-up of office space in Lisbon, which totalled 76,131 sq.m. After a more moderate dynamic in 2023, the first few months of this year showed the resilience and attractiveness of the market, which showed signs of a strong recovery in the volume of transactions, which almost tripled compared to the same period last year.
Worx Real Estate Consultants reports that the area with the highest demand in this period was the Parque das Nações area (zone 5), which accounted for 41 per cent of total absorption, also marking the largest transaction of the quarter, with Caixa Geral de Depósitos placing the WELLBE building.
On the other hand, Prime CBD (zone 1) recorded the highest number of transactions, showing a greater appetite for space in central and prestigious locations, albeit with smaller areas.
In this period, the vast majority of operations were relocations, representing around 90 per cent of the area placed. Three new companies also entered the Lisbon region, including the flex officecompany Monday.
In terms of demand profile, financial services companies captured the largest area absorbed, largely driven by two transactions over 10,000 sq.m, but TMTs continue to account for the largest number of operations.
Bernardo Zammit e Vasconcelos, Head of Agency at Worx Real Estate Consultants, comments that “Seeing the market recover again and return to pre-pandemic values makes us confident about the rest of 2024. So far, WORX has been responsible for placing more than a third of the total area absorbed, with approximately 29,200 sq.m, and has been responsible for four of the five largest transactions at the start of the year. These results are a reflection of our teamwork and our distinctive positioning in the face of the challenges facing the Lisbon office market.”
Given this start to the year, the outlook for the market remains optimistic, given the growing number of companies wanting to set up in Lisbon, due to its strategic location, good infrastructure and the country’s calm and safe environment (a factor that is so relevant in the current context that Europe is going through). “We have no doubt that the market will continue to grow, as companies continue to invest in improving their facilities and investing in good locations as a way of attracting their employees to return to the office after the pandemic,” concludes Bernardo Zammit e Vasconcelos.
17 April 2024
