Business expansion and creation is the key factor in Lisbon office market's success
The total of 166,819 m² gives Lisbon the highest figure for take-up since the record year of 2008. The lowest availability rate for years at 8.6%, is an outcome of take-up volumes growing by 16% over 2016 and reflects business momentum in the city. The good performance of Lisbon’s office market derives from stable economic growth with recovery in the labour market. Portugal’s increased exposure on the international stage and the focus given to entrepreneurship have been instrumental in the creation of new businesses. The good development in the country’s economic growth is strengthening the confidence of investors, business owners and consumers.
One factor lying behind expansion of new businesses is that many are adopting new working styles because millennials represent a high proportion of the Lisbon workforce. The real estate effect of this is being expressed in the conversion of old buildings (such as warehouses) into modern office space.
Portugal’s investment market is drawing in a wider range of international investors
2017 was one of the best post-crisis years for the Portuguese real estate investment market with nearly €2bn spent, representing a 38% increase in total volume over 2016. The domestic market registered more than fifty commercial deals, with an average value of around €35 million per operation. The Lisbon market registered a total investment volume of €815m, with offices playing a major role with €728m recorded. International investors are the main buyers in the market representing 85% of the total amount, with the origin of purchasers widening to include countries such as China and the United States.