Quarter in Numbers

The accumulated number of transactions recorded in the first two quarters of 2023 demonstrate a slowdown in the office market in the Lisbon area.
Carrying out a simple analysis of year-on-year variations based on the number of transactions, it is worth noting a drop of around 33% compared to 2022.
The main drop in the number of operations is recorded in zone 1, with a year-on-year variation of -70% compared to the same period last year. Precisely the area where rents are highest and the areas available on the market are smaller.

The drop recorded could be explained by the demand profile in this area, namely companies linked to IT, attracted by locations well served by access and support services, which over the last year carried out a series of restructuring of their structures and internal organization.
The big difference compared to the previous year is, however, in relation to the volume of areas transacted in the Lisbon market. The drop recorded is around 77% compared to 2022.
One of the main reasons for this disparity is the fact that a significant part of the absorption recorded in the first half of 2022 was the result of pre-leasing operations responsible as a whole for more than 125.000 m2, which very simply were not registered during the first half of 2023.

In the next quarter it will be interesting to monitor the evolution of the number of transactions registered in the market to have a more concrete idea of ​​the market dynamics in the short term.