The second quarter of 2024 saw a continued recovery in demand for office space, with 40 deals totaling 48,700 sq.m of take-up in the Lisbon region. This figure represents more than double the occupancy of the same period last year.
These results follow on from a first quarter that had already surpassed demand from the previous year, resulting in demand in the first half of the year being three times higher than the same period last year, with 123,000 sq.m being placed, spread over 81 deals. As a result, 2024 will be one of the most profitable semesters of the last decade, having already surpassed the overall figures for 2023.
Worx Real Estate Consultants reports that the area with the highest demand during this period was the Parque das Nações area (zone 5), which accounted for 41% of total absorption. This area also saw the largest transaction of the quarter, with Caixa Geral de Depósitos taking the WellBe building, where it will occupy 26,709 sq.m.
Although the Western Corridor (zone 6) saw the highest number of transactions, albeit with smaller deals, there was a greater appetite for Prime CBD (zone 1), which saw the biggest increase in the number of deals compared to the same period last year.
During this period, relocation was the main driver of demand, accounting for around 80% of the area placed. On the other hand, the entry of fifteen new companies in the Lisbon region in the period under review underlines the recovery trend in the office market and attests to the attractiveness of the Portuguese market.
As far as the demand profile is concerned, financial services companies accounted for around 40% of the area absorbed, although TMTs continue to account for the largest number of transactions.
In this context, it’s worth highlighting the demand from the education sector, which recorded the largest operation in the second quarter, with the placement of the European University in Oriente Green Campus, in a 15,800 sq.m operation, advised by Worx.
The period also saw five flex office transactions, amounting to 8,100 sq.m, including the entry of Monday By Urbania in Lisbon.
Given these results, the outlook for the market remains optimistic, in what is proving to be a year of recovery in terms of office occupancy. “Lisbon continues to demonstrate its resilience in this sector, on the one hand, and a commitment to quality facilities on the other. In this first half of 2024, Worx has already been responsible for the placement of approximately 51,000 sq.m, which reflects the dynamic demand we are seeing,” comments Bernardo Zammit e Vasconcelos, Head of Agency at Worx Real Estate Consultants. With regard to the future of the sector, he adds that “we can look forward with confidence to the future of the office sector in the coming years. Multinational companies continue to invest in our country, bringing positive occupancy dynamics, particularly in the technology sector and in the area of shared services, while owners and investors have also been able to keep up with the growing demand for higher quality space.”
July 23, 2024
