The cost of renting office space in Porto is rising, driven by increasing interest from international companies establishing operations in the city. Prime rent now stands at 20 euros per square meter, following seven years of stagnation around 18 euros—a rise of 11%.
Market Performance
According to Cristina Almeida, head of JLL in Porto, the market is already moving toward 21 euros. She attributes this growth to Porto’s competitive location in Europe, noting that the city has transitioned from being Portugal’s second city to becoming an alternative to other European capitals, including Lisbon.
Read More About: Prime Minister Appreciates PS Leader To Abstain From 2025 State Budget Vote
Since 2020, not a single pitch [presentation of a property] between Porto and Lisbon has been lost by Porto, assures Cristina Almeida. While she refrains from disclosing client names for confidentiality reasons, she highlights that the price per square meter in Lisbon starts at 29 euros.
Evolving Company Requirements
The rental value is one of the main selection criteria, but it is far from the only one. She recalls:
It is very difficult to retain talent and companies are concerned about the well-being of their employees.
Before the war in Ukraine, Porto faced strong competition from Warsaw and Krakow in Poland, both recognized for their modern and sustainable buildings. However, the landscape has shifted. Developers in Porto have adapted to new market demands, investing in workspaces that meet evolving criteria.
According to Cristina Almeida, companies now prioritize convenient locations that reduce commuting times for employees. They also seek spaces offering amenities like gyms, nearby restaurants and shops, collaborative areas, green spaces, and buildings with sustainability certifications such as BREEAM, LEED, and Well.
City Attractiveness
The city’s overall attractiveness is also a key factor. Porto’s quality of life, safety, strong educational institutions, and hospitality are significant advantages in the global competition to attract companies.
These added values make the city an appealing destination for businesses looking to establish a presence. The manager stresses:
This human capital is unique and acts as a magnet to attract people and investment, and is also a driving force in the real estate sector.
Relocation of Companies
As a result, Porto became an attractive relocation option for a North American company previously based in Moscow when the war in Ukraine began. In an internal survey, employees praised the city’s welcoming nature and its openness to integrating people from different nationalities.
Today, the company operates from the heart of downtown Porto.
Ongoing Development Projects
Several projects are currently underway to meet the demands of this new market, including DM2, Mutual, Viva Offices, and Hop. Nearly 95,000 square meters of office space are under construction, distributed across the following areas:
- Matosinhos (22%)
- Porto Business Zone (21%)
- Boavista (16%)
- Baixa (15%)
- Zona Oriental (13%)
- Maia (7%)
Key Developments in Office Market
Cristina Almeida considers POP – Porto Office Park to be a key starting point for the modernist wave of office developments in the city. POP was the first project in the country to receive BREEAM certification for construction, and it was built speculatively, meaning there were no prior lease agreements in place.
Also Read: Amadeu Guerra Sets Red Lines for Government Investment in Justice
Despite launching during the pandemic—a challenging time for the real estate market—POP achieved 100% occupancy. It demonstrated to developers that speculative construction in Porto can be successful, emphasizes Cristina Almeida.
Growing Market Interest
Market data reinforces the growing interest of companies in Porto. In August, the city registered a higher office space take-up than Lisbon, with an accumulated growth of 11% compared to the previous year, according to Cristina Almeida.
The total office space absorbed in Porto up to September this year reached 55,335 square meters, surpassing last year’s annual total of 50,500 square meters.
Cristina Almeida highlights that, in August, Porto’s office market experienced a remarkable growth of 362% compared to the previous month.
She said:
Due to a phenomenon that is not a trend, but is now becoming more common: the signing of pre-leases, as well as the occupation of the entire building by a single tenant.
JLL’s Market Leadership
In this dynamic context, JLL became the leader in the Porto office market for the first time in the first half of the year, capturing a 41% market share. However, supply still lags behind demand, with 35,000 square meters of active demand reported by the manager.
The influx of new companies, the expansion of existing ones, and various relocations further strengthen the demand for housing, impacting prices as well. The average value per square meter has now reached 5,613 euros.
