Lisbon office market recovers at the start of the year

Lisbon office market recovers at the start of the year

The first month of the year was synonymous with a recovery in occupancy in Lisbon, with the reactivation of operations in large areas. JLL, which has just released the results of its monthly bulletin dedicated to the performance of the office market, says so.

In the first month of the year, 6,800 sqm of office space was occupied in the capital, of which 72% is concentrated in three deals that involve taking over areas of more than 1,000 sqm. In total, these operations amount to 4,800 sqm, the largest of which is around 2,400 sqm, another 1,400 sqm and another 1,000 sqm . It should also be noted that the total monthly volume is up by around 73% on the same month last year.

«Although January's take-up was not very robust compared to monthly records in the market's strongest years, it is an indicator of an important upturn in activity. Obviously it has to be seen in the light of a naturally less strong start to the year, but it opens up positive prospects for 2024 not only because of the 70% growth compared to last year, but also because of the return of operations involving large areas," comments Sofia Tavares, Head of Office Leasing at JLL.

During the month of January, 12 operations were completed in Lisbon, with the total area taken for immediate occupation. The Prime CBD was the most dynamic area, with a 45% share of take-up, while TMT’s & Utilities companies were the most dynamic, generating 44% of take-up.

The improvement in expectations regarding inflation and interest rates leads us to believe that demand, which has postponed its decisions due to macroeconomic uncertainty, will return to the market more actively. In addition, more spaces are starting to appear that are suited to the new requirements of companies in terms of adapting to working models, sustainability and modernity. This will also reactivate demand that wasn't finding an answer to its needs, according to Sofia Tavares.

Oporto's office market slows down

According to JLL data, January was a soft month in the Invicta city, with 1,300 square meters of occupancy in a total of 4 transactions. This volume is 59% below January 2023 and was mostly (70%) placed in the CBD Boavista area. Also in Porto, it was the TMT’s & Utilities companies that proved to be the most dynamic, with 70% of the monthly take-up. JLL highlights the fact that all the operations were for immediate occupation.

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