{"id":15401,"date":"2025-01-09T11:40:45","date_gmt":"2025-01-09T11:40:45","guid":{"rendered":"https:\/\/worx.pt\/review-of-2024-and-outlook-for-2025\/"},"modified":"2025-01-09T15:52:42","modified_gmt":"2025-01-09T15:52:42","slug":"review-of-2024-and-outlook-for-2025","status":"publish","type":"post","link":"https:\/\/worx.pt\/en\/review-of-2024-and-outlook-for-2025\/","title":{"rendered":"Review of 2024 and outlook for 2025"},"content":{"rendered":"

As 2024 draws to a close, WORX Real Estate Consultants<\/strong> is presenting its final conclusions on the real estate market in 2024<\/strong> and its outlook<\/strong> for 2025<\/strong>.<\/p>\n

The first highlight is that the balance sheet for 2024 was positive<\/strong> across all sectors, with the office<\/strong> rental market standing out with more than 204,000 m2<\/strong> placed in Lisbon<\/strong>, and the \u20ac2,300 million<\/strong>\u00a0invested in the various commercial real estate sectors.<\/p>\n

Pedro Rutkowski, CEO of WORX<\/strong>, talks about how real estate was once again able to excel in 2024 and demonstrate its resilience in the face of the economic and financial environment, after a year of weaker activity like 2023. He predicts that \u201c2025 will start on a positive note, with an increasingly favorable financial context and a handful of investment opportunities in Portugal, in whatever sector\u201d.<\/p>\n

 <\/p>\n

Positive turnaround in Lisbon’s office market<\/h2>\n

The office market recorded its fourth best year ever, with occupancy in Greater Lisbon reaching 204,400 m\u00b2 in 2024. This occupancy figure also represents a remarkable 77%<\/strong> increase in demand compared to 2023.<\/p>\n

The biggest deal of the year was Caixa Geral de Dep\u00f3sitos<\/strong>‘ occupation of the entire WellBe<\/strong> building (zone 5), with over 26,700 m\u00b2<\/strong>. This was followed by Banco de Portugal<\/strong>‘s occupation of the 17,000 m\u00b2<\/strong> \u00c1lvaro Pais 2<\/strong> building (zone 3) and the European University’s<\/strong> occupation of the 15,800 m\u00b2<\/strong> Oriente Green Campus<\/strong> (zone 5), both advised by WORX’s Agency<\/strong> team.<\/p>\n

As a result of these large deals, the Parque das Na\u00e7\u00f5es (zone 5) and Emerging Zones (zone 3) areas attracted the highest volumes of take-up, 35% and 23% respectively. However, the CBD (zone 2) came in third place, with 14% of take-up, confirming companies’ appetite for central locations, but where there is generally less availability.<\/p>\n

Regarding this analysis, Pedro Rutkowski<\/strong> also points out that \u201cthese are signs of a clear recovery in demand for office space, which should continue into 2025. WORX is proud to have participated in the sale of 74,000 m\u00b2<\/strong>, including in 2 of the 3 largest transactions of the year, with a market share of 36%<\/strong>\u201d.<\/p>\n

Looking ahead, adjustments to remote and hybrid working policies in some companies are expected to contribute to modest growth in office demand in 2025. The Pan-European Office Occupier Survey 2024 by BNP Paribas Real Estate<\/strong>, of which WORX is an Alliance Partner, which surveyed 168 companies with a European presence, concluded that 45% of companies intend to reduce the number of remote working days. These expected changes, coupled with the need for offices to be increasingly flexible spaces, should contribute to this increase in demand for offices.<\/p>\n

Prime rents are also likely to show a moderate increase in 2025, due to the imminent completion of some new projects in the Prime Zone (zone 2) and the Historic Center (zone 4), offering spaces available at higher rents.<\/p>\n

 <\/p>\n

Recovery in commercial real estate investment, with notable deals at the end of the year<\/h2>\n

Investment in commercial real estate<\/strong> in Portugal<\/strong> amounted to around \u20ac2.300 million<\/strong> in 2024, 42%<\/strong> more than in 2023.<\/p>\n

The fourth quarter of the year saw the biggest deal of the year, with the acquisition of the Athos Project<\/strong>, comprising several supermarkets and stand-alones from the Os Mosqueteiros<\/strong> group, whose buyer Leadcrest Capital Partners<\/strong> has already acquired a 49%<\/strong> stake for around \u20ac250 million<\/strong>. It’s therefore no surprise that the retail<\/strong> sector accounted for the lion’s share of the investment volume, with \u20ac1,130 million<\/strong>, having almost doubled compared to 2023 and standing out as the second best year in the last decade.<\/p>\n

The hotel<\/strong> and office<\/strong> sectors also accounted for more than a third of the total investment, with 20%<\/strong> and 15%<\/strong> respectively. The sale of the Conrad<\/strong> Algarve<\/strong> at the end of 2024, bought by Quinta do Lago<\/strong> for \u20ac150 million<\/strong>, was the most significant operation in the hotel sector. The office sector lost prominence to other sectors, but still had the major operation of the sale of K-Tower<\/strong> to Real IS<\/strong>, totaling close to \u20ac345 million<\/strong>.<\/p>\n

The recent reductions in interest rates have led to some acceleration in investment activity. However, a reduction in the differences in the negotiation of purchase and sale values is already evident, as financing conditions become more favorable. This is why a more substantial recovery is also expected in 2025.<\/p>\n

Looking ahead, significant investment growth is expected in the residential<\/strong> and logistics<\/strong> sectors, along with a continued recovery in the attractiveness of the office<\/strong> sector. Given that further reductions in interest rates are on the horizon, a compression of prime yields<\/strong> is likely.<\/p>\n

 <\/p>\n

Pedro Rutkowski<\/strong> concludes that \u201cwe closed 2024 with historic results in the sector, and we are looking ahead to 2025 with optimism, hoping to see the new projects that are emerging on the market. Portugal continues to score points as a destination of excellence for investors and multinationals, and we are certain that we will maintain our position.\u201d<\/p>\n

 <\/p>\n

January 9, 2025<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

As 2024 draws to a close, WORX Real Estate Consultants is presenting its final conclusions on the real estate market in 2024 and its outlook for 2025. The first highlight is that the balance sheet for 2024 was positive across all sectors, with the office rental market standing out with more than 204,000 m2 placed […]<\/p>\n","protected":false},"author":26,"featured_media":15412,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[40],"tags":[],"class_list":["post-15401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/posts\/15401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/comments?post=15401"}],"version-history":[{"count":0,"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/posts\/15401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/media\/15412"}],"wp:attachment":[{"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/media?parent=15401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/categories?post=15401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/worx.pt\/en\/wp-json\/wp\/v2\/tags?post=15401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}