According to Moody's Analytics, Portuguese GDP growth will slow down to 2.2% in 2023 and 1.4% in 2024, progressing to 2.2% in 2025. Nevertheless, the country remains as one of the fastest-growing economies in the euro zone. Investment is expected to drop 1.2% in 2023 and to increase 4.7% in 2024. Inflation should ease in the near term, reaching 4.5% in 2023 and 2.6% in 2024. Despite the increase in the unemployment rate to 6.4% in 2023, it is forecasted to decrease to 5.9% in 2024 as the labour market resumes its recovery.
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Portugal MarketBeat Snapshot Reports
Andreia Almeida • 14/11/2023
Author
Current Marketbeats
Portugal Industrial MarketBeat
In the fourth quarter of 2023, the Industrial & Logistics sector in Portugal registered 14 new occupancy deals, encompassing 52,300 sq.m. Overall, the year-end take-up volume reached 429,800 sq.m, reflecting a year-on-year decrease of 26%, still the third highest volume of the decade. In 2023, the average deal size registered a 9% decrease, to 6,700 sq.m, with most activity being concentrated at Greater Lisbon (46%) and Porto (26%) regions.
Portugal Investment MarketBeat
Commercial real estate investment volumes for the fourth quarter of 2023 reached €680 million, contributing to year-end figures of €1,690 million and a year-on-year decrease of 44%. The quarters’ main transactions further consolidated the prominence of the retail and hospitality sectors, each contributing nearly 40% of the total volume during last year.
Lisbon Office MarketBeat
During the fourth quarter of 2023, the Greater Lisbon office market registered 41 new leases, with a total take-up volume of 40,500 sq.m. The year-end figures, which include 152 deals, regard a take-up volume of 112,500 sq.m – lowest in the past decade, and an expressive year-on-year drop of 59%. Likewise, the average deal size reduced by 46%, to 740 sq.m.
Porto Office MarketBeat
During the fourth quarter of 2023, the Greater Porto office sector recorded a total take-up of 9,430 sq.m, distributed over 16 new leases. The year-end figures include 64 deals, with a cumulative take-up of 50,050 sq.m, representing a year-on-year decrease of 14%. The average deal size registered a slight contraction, to 780 sq.m.
Portugal Retail MarketBeat
During the fourth quarter of 2023, Salinas Park (Vila Franca de Xira) was concluded with 12.000 sq.m. Over the next three years, a total of 81,500 sq.m of GLA are expected to be completed. A significant 65% of this space will be occupied by retail parks, such as Nova Vila Retail Park; while the remaining area will be allocated to shopping centers, namely City Covilhã and the redevelopment and expansion of Centro Colombo (Lisbon).
Cushman & Wakefield’s retail take-up recorded a total of 660 new openings during 2023, 13% above the registered values of last year.
Cushman & Wakefield’s retail take-up recorded a total of 660 new openings during 2023, 13% above the registered values of last year.
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