JLL’s data illustrate that despite Lisbon’s market volume, Porto’s acceleration marks a significant shift in prominence, underscoring divergent growth patterns between the two cities.
This divergence occurs against a turbulent macroeconomic backdrop.
Global volatility, inflation, and the ECB’s interest rate hike have made companies more cautious in real estate investment.
Nevertheless, both Lisbon and Porto maintain absorption levels consistent with historic averages, and JLL expects solid performance for both markets in the year’s second half.
As of May, Lisbon had completed 66 real estate transactions. The average area sold was about 900 square meters per transaction. Demand came mainly from tech, telecommunications, and public services (TMT & Utilities), which made up 37% of the total area absorbed.
These companies preferred the New Office Zones, choosing them for over 4 out of every 10 contracted square meters.
In May alone, Lisbon secured immediate occupancy of 10,400 square meters through 13 leases. During that period, consulting and law firms led demand. They accounted for 41% of the choices and showed a preference for urban expansion fringes.
In turn, the dynamism of the Porto market was based on entirely different corporate foundations and was decisively leveraged by the public and associative spheres. The subsector, comprising the State, European organisations, and associations, led in intentions to establish themselves in Porto, claiming a 43% share of the market. In total, the northern city recorded 21 transactions up to the end of May, with each transaction averaging 690 square meters.
In the demand ranking, companies in the technology and telecommunications sector ranked second, accounting for 37% of the region’s total absorption.
In terms of geographical distribution within the greater Porto area, the largest share of commercialised offices was located in the so-called Other Zones of the city, with 43% of registrations, followed by the Porto Business Zone, which attracted 31% of the business volume, in a cycle that ended with insignificant activity in the last month analysed.
