Office Market Overview


Updated in February 2024

The office market in Portugal is concentrated in Lisbon, although Porto is recording strong dynamics since 2016. Demand from international companies, relocating their outsourcing services to Portugal is also observed in other cities in the country, beyond Lisbon and Porto.


The office stock in Lisbon is a mix of charming buildings in the city centre and modern properties, mainly in the Expansion Area of the city, in Parque das Nações and in the office parks located in the Western Corridor, on the periphery of Lisbon.

A boost in the residential and tourism market led to the conversion of several office buildings for both these sectors, resulting in a relevant decline in the total office stock, which was fully revised in 2018. The current stock comprises 4.5 million sq m.

The riverfront axis is the new trendy area, attracting a wide range of occupiers, including those traditionally located in the prime CBD, namely law firms, as well as creative industries and technology companies. Notwithstanding, the lack of office supply in this area limits take-up levels.

Lisbon Office Zones

Source: CBRE Research

Over the last years, take-up has been lifted by a rise in outsourcing activity, with the establishment and expansion in Portugal of shared services from foreign companies, as well as by an increasing growth from technology companies. Annual average take-up over 2015-2019 was 172,000 sq m, comprising around 220 deals/year. The Coronavirus outbreak halted the strong activity that was being observed in the office sector, reflecting in 2020, a 30% year-on-year decline in take-up. Over 2021, companies resume gradually their workplace strategies and take-up showed a recovery from previous year.

In 2023, Lisbon office market registered an occupancy of c.113,000 sq m (-60% y-oy), but it is important to mention that this performance reflects the uncertainty of the market and that 2022 was a record year in office occupancy. Relocations were the main driver (63% of the take-up), Expansion Area was the zone with the highest weight in 2023 (24% of total take-up) and “TMT's & Utilities” and
“Pharmaceuticals and Health” were the sectors with the highest shares of occupancy. Despite the decrease in take-up over 2023, we have been witnessing a gradual increase of demand for office spaces. 

Gross Office Take-Up in Lisbon

Source: LPI; CBRE Research

Despite the strong demand verified over pre-pandemic years, the completion of new office buildings was low, as development was targeted at the residential and tourism sector. Only since 2021, a more relevant level of office construction started to be observed. 2023 saw the completion of 44,780 sq m of office spaces in Lisbon, of which only 6,700 sq m were speculative. There are currently 26 projects under construction (nearly 314,000 sq m), which are expected to be completed over the next two years - 159,000 sq m in 2024 . It is worthy to highlight that of the current projects under construction, around 65,000 sq m are refurbishments, which enlightens the desire of owners to renovate their assets, to be competitive with the new supply that is expected to enter the market.

New office completions in Lisbon

Source: LPI; CBRE Research

Office vacancy in Lisbon reached an all-time low of 5% in 2019. However, with the pandemic, started gradually increasing achieving 8.9% in mid-2022. In the end of 2023, vacancy rate in Lisbon increased by 1.0 pp compared to 2022, currently standing at 9.2%.

Rental upsurge has been accentuated, particularly over the years 2018 and 2019, during which prime rental values increased more than 10% in all zones. In 2023, prime rent in CBD1 increased 4% year-o-year, standing at €28.00/sq m. Over the next year rents are expected to stabilize, although slight increases may occur.



The office market in Porto includes not only the city of Porto but also the neighbouring municipalities of Vila Nova de Gaia, Matosinhos and Maia. In Porto city, the office stock is concentrated in the Boavista area, in Downtown and ZEP. Office stock in Porto reaches 1.31 million sq m.

Porto Office Zones

Source: CBRE Research

The office stock is considerably diverse, comprising modern buildings, the majority located in the CBD Boavista and Vila Nova de Gaia zones, as well as buildings that were converted from former industrial premises. Most of the existing office buildings have small-size office spaces, which do not meet the current demand requirement for large floorplates. Over the last years, the Porto office market has seen a strong upsurge in demand from technology companies and shared services from international companies, which occupy medium and large-size office spaces. Therefore, Porto office market is experiencing a new phase as, in the past, demand was almost exclusively local and for smaller areas.

Effectively, take-up has moved from an annual average of 16,000 sq m in the period 2007-2015, to 56,600 sqm in 2016-2022. In 2023, Porto office market closed with a take-up of 50,000 sq m, representing an 15% decrease compared to the previous year and reflecting the uncertainty of the market. Expansions and new companies were the main driver and and the biggest transaction of the year was an occupation of almost 8,000 sq m in CBD Boavista zone.

Gross Office Take-Up in Porto

Source: PPI; CBRE Research

As in Lisbon, the level of construction of new office spaces in Porto region was low for several years. It was only in 2019 that we stated to observe a higher development activity. In 2023, there were five projects completed, totalling almost 35,000 sq m, although more than 31,000 sq m are already commited. There are 19 projects expected to be completed in 2024, 16 of them already under construction, totalling more than 75,500 sq m. Currently, total office stock in Porto totals approximately 1,314 million sq m and, with the forecasted pipeline, over the next three years, it is expected that the total stock stands at 1,450 million sq m.

There is a latent demand of more than 50,000 sq m of office spaces and, if this verifies, we foresee a total yearly take-up of 55,000 sq m in Porto in 2024, which will position 2024 above 2023, although still weaker compared to the previous years.

New office completions in Porto

Source: PPI; CBRE Research

Strong dynamics, low offer of adequate office spaces as well as the improvement of the quality of supply, namely with the renovation of buildings, has contributed to an expressive increase in prime rents in all zones before the pandemic. In 2023, prime rents increased in CBD Boavista and in ZEP zone, standing at €19/sq m/month and €17/sq m/month, respectively. 

Retail Market Overview


Updated in February 2024

Shopping centres were the main retail attraction in Portugal over three decades. However, after the economic and financial crisis, strong tourism growth, economy recovery as well as the renovation of several buildings have brought a new life to the dormant historic centres of Lisbon and Porto. The Portuguese property retail market was growing at a good pace and gradually adapting to online commerce and changes in lifestyle, until Covid-19 outbreak. Private consumption was attaining the highest historic levels and tourism increasing for 10 rolling years. Despite a fall in 2020, private consumption started to grow in 2021. 

Retail Scheme Format Description Prime Rent
Shopping Centre

130 schemes (> 5,000 sq m)/ 2.9 million sq m GLA.

Consolidated and mature sector with wide offer spread around the country.

Colombo in Lisbon, and NorteShopping in Porto, are considered the top shopping centres in Portugal.

€95.00/sq m/month

Retail Park

48 schemes/ 517 thousand sq m GLA.

Several projects are being developed or under licensing.

Recent openings:

  • Casal do Marco (12,000 sq m);
  • Lagos Retail Park (12,000 sq m);
  • Phase I - Salinas Park (8,000 sqm).

Under construction:

  • Fábrica do Cobre (10,000 sq m);
  • City Centre Covilhã (18,000 sq m)
  • Nova Vila Retail Park (21,500 sq m).
€11.00/sq m/month

9 schemes/ 155,000 sq m GLA.

The best outlet centres are Freeport Lisboa Fashion Outlet in Greater Lisbon, and Vila do Conde Porto Fashion Outlet in Greater Porto.

€25/sq m/month

Department Stores

The Spanish El Corte Inglés, is the major department store operator in Portugal, and the owner of two retail schemes in the country, one in Lisbon and other in Vila Nova de Gaia (Porto region).

It is the preferred gateway for premium brand testing in Portugal.




  High Street Retail Location Description Prime Rent
Lisbon Avenida da Liberdade Luxury and high-end supply. €120/sq m/month
Rua Garrett in Chiado Most vibrant and trendy retail area providing an eclectic combination of well-known retailers like Inditex group and Hermés. €135/sq m/month
Rua Augusta in Downtown Wider mass-market offer and several F&B units with terraces targeting tourists. €125/sq m/month
Porto Rua de Santa Catarina

The city’s most important retail street with the highest footfall and well

established stores, predominantly mass-market fashion and accessories segment. Santa Catarina is in itself a destination.
€80/sq m/month
Clérigos Tourist area with heavy pedestrian traffic, becoming firmly established, combines mass-market fashion and accessories with catering.  The Marques Soares local department store and the open-air gallery, Passeio dos Clérigos, where premium fashion concepts prevail, can also be find in this area. €55/sq m/month
Mouzinho-Flores Tourist area and Food & Beverage destination, where there is a steady increase in concepts, including Trendy and Lifestyle. €55/sq m/month
Aliados Main street in the historic centre lined with elegant buildings. Despite not presenting a consolidated offer, several redevelopments are currently underway and this axis is expected to emerge as the Luxury & Premium destination in Porto. €65/sq m/month

The confidence of Portuguese consumers remains negative, mainly motivated by the instability caused by current economical and geopolitical frameworks, but sales in retail schemes managed by CBRE grew by 11% y-o-y and by 18% q-oq, while visits grew by 10% y-o-y and by 8% q-o-q. Three retail parks opened in 2023 - Lagos Retail Park (Lagos), Casal do Marco (Seixal) and Salinas Park (Alverca). In high street, there were 93 store openings in Lisbon and 67 in Porto.

Retail Stock Addition

Source: CBRE Research

Logists Market Overview


Updated in February 2024

There is no structured urban plan for the logistics market in Portugal. The majority of logistics premises have been developed independently by private developers. However, several municipalities have established allotments for industrial and logistics parks, mainly targeted at the light industry and warehousing. Previously to covid, the logistics market was principally driven by major Portuguese large distribution retailers as well as transport companies, the latter undertaking a relevant share of logistics operation, as only a few numbers of worldwide logistics companies were present in the country. Effectively, a low e-commerce penetration and the proximity between Portugal and Spain placed Portugal as an extension in the logistics chain established in the neighbouring country.

The Covid-19 pandemic accelerated e-commerce growth and in 2021 Portugal achieved a 7.6% penetration from approximately 5% before covid, according to Euromonitor. We have been seeing the expansion of established retailers and expect to see the transfer to Portugal of a few logistics processes of international companies. 

After record years in 2021 and 2022 for logistics occupancy, 2023 registered a slowdown of c. 20%, totalling 316,000 sq m. This was motivated by the sharp drop of new supply. In fact, over 2023, only 25,500 sq m of logistics spaces were completed, compared to 290,000 sqm in 2022 and 265,000 sq m in 2021, which represents average falls of 90%. Moreover, the completed projects are already fully occupied, which is an indicator of the healthy demand in Portugal’s logistics market.

Logistics Gross take-up in Portugal

Source: CBRE Research



The almost non-existent speculative development over the last decade in Portugal has placed vacancy rates at historic low levels. The availability of spaces to lease is very short and take-up has been marked by build-to suit developments.

The Lisbon warehouse and logistics stock is concentrated in eight zones. The more central zones, namely Lisbon, Sintra-Cascais, CRIL and Loures-Vialonga are characterised by the supply of smaller sized warehouses and frequently of mix-use spaces and are those demanded for the last mile logistics. The big box logistics stock is concentrated in the four remaining zones, namely Póvoa Sta Iria – Alverca, Carregado - Azambuja, Montijo - Alcochete and Palmela - Setúbal. Palmela-Setúbal zone emerged from the installation of the Volkswagen plant (Autoeuropa) at this location in the early 1990’s. The prime logistics axis runs along road N3 at Carregado – Azambuja zone. These zones comprise a logistics stock of 2.6 million sq m, including stand-alone warehouses but also a few logistics parks.

Lisbon Warehouse and Logistics Zones

Source: CBRE Research

Lisbon region logistics take-up skyrocketed in 2021 achieving a historic high of 264,000 sq m and largely exceeding the 2016-2020 annual average of 141,000 sq m. In 2023, Lisbon occupation reached 176,500 sq m, a 22% decrease compared to 2022, which was a super positive year for the sector. But it is important to highlight that the lack of supply is a relevant problem for the logistics market, continuing to have an impact. The existing product is not enough and even the existing one does not meet the requirements for the current demand.

Logistics gross take-up in Lisbon

Source: CBRE Research

Vacancy rate increased by 1.7% in one year and stands now at 2.7% (-13.1% q-o-q). Most of the new projects that have been constructed are build-to-suit or have been pre-let. After almost one decade with residual speculative development, only 15,000  sq m of logistics spaces were completed in 2023 but there are 390,000 sq m under construction that are expected to be completed in 2024.

The lack of supply has been increasing the rents in a way that the prime zone, Carregado-Azambuja, does not have the highest rents anymore. Prime rent in Lisbon is now at 5.75€/ sq m in Sintra-Cascais zone and we forecast that it can reach 6.00€/ sq m/month in 2024.

Logistics developments in Lisbon

Source: CBRE Research



The Greater Porto logistics stock is concentrated in 7 major zones, namely Matosinhos, Airport, Maia, Vila do Conde, Trofa, Alfena and Vila Nova de Gaia. Contrary to Lisbon, in Porto there is a wider spread of logistics warehouses and within mix-use areas.

Porto Warehouse and Logistics Zones

Source: CBRE Research

The logistics stock in Greater Porto currently amounts to 1.4 million sq m. Additions to the stock over the last 10 years have been comprised exclusively by build-to-suit developments, which was seen in 2022 as well. However, we are recording again speculative projects. After VGP Park completion in 2021, with 30,500 sq m, five other speculative projects are currently under construction and due to be completed in 2024, totalling 165,000 sq m.

On the demand side, take-up has been very uneven. Take-up in 2021 recorded a historic new high of 142,250 sq m, marginally exceeding the previous 133,000 sq m verified in 2017, when Jerónimo Martins occupied 79,000 sq m. However, 2022 did not recorded the same take-up level, with a total occupation of 63,650 sq m. In 2023, Porto registered an occupancy of 77,000 sq m, a 21% increased compared to the previous year, but still under 2021. 

As in Lisbon, the lack of qualitative supply is also challenging in Porto, as there is a severe scarcity of spaces that respond to the demand’s requirements. On top of this, with the macroeconomics uncertainty, investors and occupiers are more cautious in their decisions.

Logistics gross take-up in Porto

Source: CBRE Research

Given the inexistence of spaces available to let, rents have been under upward pressure increasing in all zones. Rents increased €0.25/sq m/month in some locations and the prime rent is now 5.00€/sq m in Maia zone – which represents a 11% increase compared to the end of 2022. Additional increases are expected over the following months.

In 2023, there was only one building completed in Porto – a 10,500 sq m warehouse at Vilar and Mosteiró. There are seven projects currently under construction and expected to be completed in 2024, totalling 220,500 sq m, although 75,000 sq m are already committed. The largest one is Panattoni Park Porto, with 75,000 sq m.

Logistics Developments in Porto

Source: CBRE Research



Hotel Market Overview



Updated in February 2024

Well-known for its beautiful beaches, sunny days, good quality golf resorts, excellent wine and cuisine as well as cultural heritage, Portugal is currently one of Europe’s leading tourist destinations. Its international recognition has increased significantly over the 2010's, with tourism performing as one of the key strategic sectors of the Portuguese economy. After a relevant 43% upsurge in the number of overnight stays from 2014 to 2019, achieving a total 70 million in 2019, Covid-19 outbreak halted the tourism sector and the number of hotel overnight stays plummeted 65% year-on-year in 2020, leading to a 60% drop in the RevPAR 

However, the recovery was faster than expected and, in 2023, new records were achieved. Tourist accommodation establishments recorded 30 million guests and 77 million overnight stays, reflecting annual increases of 13% and 11%, respectively. Overnight stays from foreign markets predominated (70% of total), totaling 54 million, and recorded the most significant growth (+15%). The domestic market contributed with 23 million overnight stays (+2%). Compared to 2019, guests increased by 11% and overnight stays by 10%.

The United Kingdom remained the main source market in 2023, accounting for 18% of overnight stays from non-residents, followed by the German, Spanish, French and North American. All regions in Portugal observed increases in overnight stays, with the most notable being the North (+15%), AM Lisboa (+13%) and the Center (+12%). Compared to 2019, the Algarve was the exception, being the only region that did not reach pre-pandemic levels, with a decrease in the number of overnight stays (-2.5%).


Lisbon is a popular city break destination with a reputation for being one of Europe’s most vibrant and trendiest capital cities, offering a good selection of new hotel units, hostels, and high-end restaurants. And this reputation has led to several international recognitions. International passengers at Lisbon airport increased 72% between 2014 and 2019 and overnight stays more than 50%, boosted by international demand which represented 84% of the market. 

However, Covid-19 outbreak severely impacted tourism performance, leaading to a 75% breakdown in overnight stays in 2020. 2021 showed a significant recovery, although still standing 60% below 2019 levels. In 2022, the Lisbon marked registered 18 million overnight stays registered, 3% below 2019 levels, but revenue per available room (RevPAR) was surpassing 2019 revenues by more than 20% and Lisbon recorded a 57,1% bed occupancy rate and €89,4 in RevPAR.

In 2022, Lisbon MA hotel market registered a total of 10,7 million overnight stays, almost reaching 2019 leves. And the data until November 2023 shows a total of 11,4 million overnight stays - an increase of 7% compared to 2022 and 9% compared to 2019.  RevPAR stands at €75,76.

In 2023, Lisbon gained 20 new hotels, most of them 4 stars, and almost 2,000 rooms. For 2024, there are already planned other 20 hotels, totalling around 2,000 rooms.

Hotel demand and RevPar in Lisbon

Source: INE | Up to November 2023


The Porto tourism market gained a boost in 2005 with the establishment of the Ryanair hub in the city airport and later, in 2015, with EasyJet. The inflow of tourists has skyrocketed in Porto. International passengers at Francisco Sá Carneiro airport increased 89% between 2014 and 2019, and 13% in 2019 – representing the highest rise in Portuguese airports.

The growth of tourism was likewise reflected in the accommodation activity. Tourism demand has increased consecutively, with the number of overnight stays rising by 78% between 2014 and 2019 when reached 4.5 million. This growth was mainly driven by foreign demand which duplicated in the same period. Spain, Brazil and France were the top inbound markets.

With this tourism growth, occupancy in Porto has also increased at a very interesting pace from 2013 to 2017, rising 13 percentage points within this period. The upward trend was interrupted in 2018, with a slight decrease to a 60% occupancy rate, which remained stable in 2019. At the same time, the RevPAR maintained a growing trend, increasing 5% to €74 in 2019.

In 2022, Porto MA hotel market registered a total of 3,7 million overnight stays, surpassing 2019 leves. And the data until November 2023 shows a total of 4,2 million overnight stays - an increase of 14% compared to 2022 and 26% compared to 2019. RevPAR in Porto records at €69,9.

In 2023, Porto gained more than 10 new hotels, most of them 5 stars, and almost 1,000 rooms. For 2024, there are already planned other 15 hotels, totalling almost 2,000 rooms.

Hotel demand and RevPar in Porto

Source: INE | Up to November 2023


The Algarve is Portugal’s premier sun and beach holiday destination, amongst both national and international visitors. Tourism accommodation nights in Algarve are mainly driven by international visitors, which represented an average of 77% overnight stays in the region during 2015-2019 period. Being strongly dependent on foreign tourism, Algarve was highly impacted by the Covid-19 outbreak. After a 62% breakdown in overnight stays in 2020, Algarve achieved 10.8 million overnight stays in 2021 (+ 38% y-o-y but still about half the demand levels of 2019).

The hotel sector in Algarve has benefitted from a very positive price performance from 2015 to 2017, having then stabilized. In 2019, hotel occupancy rate was 64% and RevPAR €71. Despite the fall over the past two years, since February 2022 RevPAR is higher than 2019.

The recovert in Algarve has been slower than in Porto and Lisbon and the sector has not reached the 2019 levels yet. In 2022, 18,9 million overnight stays were registered in the hotel market.