Investment activity in commercial real estate remained low in the first half of 2024, with transaction volume reaching €690 million, representing a slight decline of 6% year-on-year. However, in the third quarter, there was a trend of recovery, with accumulated volumes up to September reaching EUR 1,050 million, an increase of 3% compared to the same period in 2023.
Data taken from Cushman & Wakefield (C&W), publishing the 43rd edition of Marketbeat Portugal, a semi-annual analysis summarizing the activity of the national real estate market in 2024 and highlighting its main trends and perspectives.
“Current estimates reflect the expectation of a further recovery in investment in commercial real estate throughout the last quarter of 2024, with a volume of up to €680 million in various deals, currently in various stages of negotiation, with completion expected by the end of the year. In this way, it can The total volume in 2024 will reach more than €2 billion, reflecting an annual growth of 23%,” says Eric van Leuven, Managing Director of Cushman & Wakefield in Portugal.
Offices
The office market in Greater Lisbon showed a significant recovery, with 168,500 square meters sold between January and September 2024, a year-on-year increase of 134%. In Greater Porto, the capacity of 58,700 square meters also showed a growth of 44%.
Future supply in Greater Lisbon remains high, with 385,100 square meters planned for the next three years, as luxury and sustainability trends emerge in the sector.
retail
In the first nine months of 2024, 590 new job opportunities were registered, an increase of 29% compared to the previous year. Street trade represents 71% of these openings, and Lisbon represents 37% of the total. Trends include a growing appreciation for brands with purpose and the use of pop-up stores to innovate and appeal to consumers.
Industrial and logistics
The industrial and logistics market recorded the largest volume ever during this period, as 513,400 square meters were dealt with, an annual increase of 36%. Greater Lisbon has led absorption, and trends indicate growing demand for high-quality logistics space.
hospitality
Portugal's hotel industry maintained a positive performance, with the opening of around 50 new units for a total of 2,950 rooms. The future offer includes more than 110 new hotel projects, with a clear focus on developing the hotel sector.
residential
The residential market is facing increasing pressure on the middle segment, with apartment sales values stabilizing in Lisbon and Porto. Private rent continues to be affected by the imbalance between supply and demand.
Urban promotion and rehabilitation
In 2024, the urban development and rehabilitation sector recorded a total turnover of 163 million euros. It is expected that 5.8 million square meters will be submitted for licensing in the future, reflecting a significant increase compared to the same period last year.
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