News

Office spaces in Porto
29 January 2021
Companies occupied 53,856 sq. mt. of office spaces in Porto during 2020
Vida Imobiliária
During the year, around 50 operations were registered, 11% below the numbers for 2019. However, the average contracted area per transaction in 2020 increased, reflecting the conclusion of 7 operations with areas above 3,000 sq. mt.

21 of these transactions relate to gross lettable areas over 500 sq. mt., about 89% of the placed area. 13 operations relate to areas between 200 and 300 sq. mt. (8% of the placed area), and 16 to areas below 200 sq. mt. (3%).

According to Predibisa's "On Office Porto" report, ¾ of the area placed concerns the city of Porto. Boavista's CBD alone concentrated ¼ of the entire area placed during the year (13,638 sq. mt.) and 16 operations. The market was also very dynamic in the CBD of Baixa, in the Eastern Zone, Other Porto (Paranhos) or ZEP. Outside Porto, the highlight is the Matosinhos area, which concentrated 8,185 sq. mt. placed and 11 operations, followed by Vila Nova de Gaia, with 3,933 sq. mt.

More than half (56%) of the area placed in Porto in 2020 is related to the need for companies to expand their area. 31% refers to the change of facilities, and 13% to the arrival of new companies in the region. In the latter case, the number of transactions grew 40% compared to 2019.

In 2020, Predibisa placed more office area than in 2019 (11%) and registered the largest market share, with a total of 23,091 sq. mt. of total area placed (43% of the total).

The consultant was responsible for four of the seven operations registered with contracted areas above 3,000 sq. mt., which correspond to 32% of the total area absorbed in the year.

A very attractive market for companies

Predibisa explains that the good performances that the office market in Porto has registered in recent years are based on the high attractiveness of the city for companies, which has fostered the continuous capture of foreign investment for the region, even in times of pandemic.

This dynamic is underpinned by the completion and emergence of new projects, which "come to fill a shortage registered in the last year in terms of supply, meeting the needs of its occupants, which translates into a rapid occupation of new buildings".

Remote working will not replace the office

Isabel Rocha and Graça Ribeiro da Cunha, consultants in the Predibisa office area, comment in this report that the consultant "the current pandemic context has driven digital transformation and teleworking. However, we have continued to see a demand for space on the part of companies, who want their employees to return to the office in the short term, as soon as the context allows it".

They believe that "remote working may remain on a partial basis, but the office space is the place where the company develops and it is essential that it adapts to this new reality. We found that companies increasingly value spaces that allow for a better reception and permanence in the office, creating leisure areas that promote social interaction between the various employees, thus reinforcing the work and team spirit of organizations".

They also add that "at the beginning of the year and with the new period of general confinement, we will again experience a delay in decision making by companies. However, with the advancement of the vaccination program, we are convinced that there will be a greater degree of confidence, leading companies to resume and implement their projects".
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