The latest analysis by Savills reveals that, in Q1 2025, the office markets in Lisbon and Porto experienced more moderate activity, in the context of limited supply and compared to an extraordinarily strong previous year
- In Q1 2025, a total of 14,983 sq m was transacted in Lisbon
- In Porto, the take-up volume stood at 2,832 sq m in the same period
- International companies continue to play a significant role in the take-up volume of office spaces in Lisbon and Porto
Lisbon
In Lisbon, the total area transacted reached 14,983 sq m. Although this represents an 80% decline compared to the exceptional volume of Q1 2024 — a period marked by two large-scale transactions that accounted for 60% of the take-up.
The scarcity of available spaces remains a key factor. Demand remains high and highly competitive, particularly for high-quality offices. In the first three months of the year, the TMT and Utilities sector accounted for 36% of total take-up. This was followed by ‘Other Services’ with 27%.
Prime rents remained stable at € 29/sq m/month, with a 4% annual growth. The increasing number of pre-lease contracts demonstrates companies’ intention to secure strategic spaces in advance, amidst limited supply. Expectations for the coming months point to a slight rise in rents, driven by consistent demand and the scarcity of ‘grade A’ product in the market.
Frederico Leitão de Sousa, Head of Offices da Savills Portugal, states: “After a record-breaking year in 2024 in terms of office space take-up in Lisbon, the drop observed at the beginning of 2025 was, to some extent, predictable, given the limited supply currently available in the market. Furthermore, these lower numbers are also a result of extended decision-making timelines by occupiers. Still, based on Savills pipeline, we believe that 2025 will be another very positive year. The demand for prime office spaces, both from domestic and international companies, is expected to remain high, which will continue to exert pressure on rental values.”
In Lisbon, international companies represent approximately 63% of the total take-up, while in Porto this presence is even more pronounced, exceeding 80%. These figures demonstrate the key role that international players have played in the dynamism and growth of the office market in Portugal.
This strong demand from international companies reinforces Lisbon and Porto’s positioning as destination cities for the expansion of global businesses. The attractiveness of these locations is due to a combination of factors, such as quality infrastructure, availability of skilled talent, competitive operating costs, and security, placing both Portuguese cities on the radar of multinational companies seeking new hubs for their operations, shared service centres, or regional headquarters.
Porto
Between January and March 2025, Porto’s office market recorded a total take-up of 2,832 sq m, representing an 84% decrease compared to the same period last year, registering a large volume of space transacted. In 2024, six transactions over 1,000 sq m were recorded during this period, accounting for 70% of the total take-up. In 2025, no deals of that size were registered, reflecting the current challenge of a lack of suitable supply, particularly prime spaces.
The scarcity of modern, high-quality buildings has limited the completion of larger-scale deals, preventing some companies from carrying out their expansion plans. The Financial Services sector led take-up in the quarter (46%), followed by TMTs and Utilities (36%).
Prime office rents in Porto reached € 21/sq m/month – an 11% increase compared to the previous quarter and the same period last year – reflecting the growing pressure from demand by both international and expanding local companies.
Graça Ribeiro da Cunha, Offices Associate da Savills Portugal, comments:“Porto remains an attractive hub for companies, although a slowdown in decision-making times has been observed. Several enquiries initiated during the last two quarters of 2024 are still active, directly influencing current take-up levels. Looking ahead, the pipeline of around 98,000 sq m expected over the next two years – with approximately 30,000 sq m already pre-let – reinforces confidence in the market. This volume is expected to meet current demand, supporting a gradual recovery in activity throughout the year.”