Portugal MarketBeat Snapshot Reports

During the second quarter of 2024, the Industrial & Logistics sector recorded 20 new occupancy deals with a total of 249,640 sq.m, doubling the year-on-year (YoY) amount., with half of this quarter’s activity concentrated in the Greater Lisbon area. The accumulated take-up volume for the first semester reached 415,560 sq.m, near annual 2023 volume, and representing an YoY increase of 35%. the average deal size reached 8,480 sq.m during this period.

Commercial real estate investment reached €467 million in Q2 2024, reflecting a year-on-year (YoY) decrease of 7% and taking the H1 2024 volume to €688 million, registering the same growth rate during the first semester. Capital allocation by sector reflected the significant interest in Hospitality during this semester (representing 58% of the transacted volume in Q2 and 45% in H1).

The Greater Lisbon office market registered 41 new lease deals in a take-up volume of 53,920 sq.m in Q2 2024. With a total of 82 deals until June, this brought the first semester’s total volume to 127,650 sq.m, surpassing the entire annual take-up of 2023 (112,470 sq.m), also indicating a robust market growth and representing a year-on-year growth of 237%.

The Greater Porto office market registered a take up of 10,820 sq.m in the second quarter of 2024, with 21 deals. The first semester volume stood at 28,380 sq.m with 43 deals, 13% above the same period in 2023 (25,180 sq.m).

During the second quarter of 2024, a new retail scheme was completed: the Arco Retail Park (Santo Tirso) developed by Garcia & Garcia, with 6,600 sq.m. The pipeline of 153,690 sq.m for the next three years indicates higher development volumes in retail parks. Some of the main projects in pipeline include Nova Vila Retail Park (Portimão) and Retail Park Tavira within retail parks, and City Center Covilhã and the Centro Colombo (Lisbon) redevelopment and expansion amongst shopping centres.

Cushman & Wakefield’s retail take-up registered 180 new openings in Portugal in Q2 2024, contributing to total volume of 360 inaugurations in the first semester, reaching a 22% year-on-year growth.