Lisbon office market recovers strongly in the 1st quarter

Lisbon office market recovers strongly in the 1st quarter

The first quarter of 2024 was marked by significant growth in the absorption of office space in Lisbon, which amounted to 76,131 square meters, according to Worx.

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 during this period was the Parque das Naçăes area (zone 5), which accounted for 41% of total absorption, and also had the largest transaction of the quarter, with the placement of Caixa Geral de Depósitos in 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, accounting for around 90% of the area placed. In this context, three new companies also entered the Lisbon region, including the flex office company Monday.

With regard to the profile of demand, financial services companies captured the largest absorbed area, driven largely by two transactions above 10,000 sqm; however, TMTs continue to represent the largest number of transactions.

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 sqm, 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 differentiated positioning in the face of the challenges facing the office market in Lisbon".

He adds that "at the start of the year, the outlook for the market continues to be 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 important 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 during the pandemic".

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