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Offices
22 July 2020
Office occupancy in Porto increases 38%
Vida imobiliária

In the first half of this year, the office market in Greater Porto registered a 38% increase in occupancy volume, compared to the same half of 2019, in a total of 28,381 sq. mt. of offices taken over. 

Despite the pandemic, Porto's office market continues to grow. This is shown by Predibisa's OnOffice report, according to which, despite a smaller number of registered transactions (4% less, in a total of 24 trades), the average value contracted per operation increased to 1,183 sq. mt. This variation was influenced by four operations above 3,000 sq. mt.

According to the consultant, 2/3 of transactions closed until June involved multinationals, and 38% of them concern the installation of new companies in the region, confirming Porto's growing attractiveness in the international business area. On the other hand, 50% of the take up was motivated by the expansion of the companies' area.

In this semester, the city of Porto absorbed 65% of the area placed, with CBD leading, with giht transactions and 9,347 sq. mt. contracted (33% of the total). Then come Matosinhos, with 20% of the area taken, Vila Nova de Gaia, with 10%, and Maia, with 6%.

Companies in the TMT’s & Utility sector were the most active in the first half of the year, with a total of 6 transactions and 25% of demand, followed by the Business Services and Other Services sector, with 21% each. The Business Services sector was responsible for the highest percentage of occupancy, in a total of 31% of the contracted office area.

In the period analyzed, Predibisa was responsible for placing 14,403 sq. mt., about 51% of the total area absorbed in Greater Porto, ensuring half the number of transactions.

Graça Ribeiro da Cunha, Head of Predibisa for the Office area, highlights that "the good performance of this first semester, following what has been happening in recent years in the Greater Porto office market, is due to the conclusion of business that had already started in the previous year. As a rule, large companies plan to set up in new countries or even to expand, well in advance”. 

The official points out that "the worldwide pandemic came to safeguard this whole process, thus putting some businesses on stand-by, with no indication of a date for their development yet. It is our opinion that this slowdown may be reflected in the coming months”. 

The demand for office space in Porto continues to exceed supply. Grande Porto currently has a pipeline of approximately 86,000 sq. mt. of offices, in the accounts of Predibisa, whose entry into stock is expected by the end of next year. But it will be insufficient for the gap between supply and demand.

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