According to Moody’s Analytics, Portuguese GDP growth slowed down to 2.3% in 2023. In 2024, it is expected to further decrease to 1.9%, remaining at this level in both 2025 and 2026. Investment grew by 0.8% in 2023 and is forecasted to grow by 4.5% in the current year. After rising to 4.3% in 2023, inflation should continue to decline in the near term, reaching 2.3% in 2024. Despite a slight growth to 6.5% in 2023, the unemployment rate is expected to decrease to 6.2% in 2024.
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Portugal MarketBeat Snapshot Reports
Andreia Almeida • 17/06/2024
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Current Marketbeats
Portugal Industrial MarketBeat
In the first quarter of 2024, the Industrial & Logistics sector in Portugal registered 27 new occupancy deals totalling 165,900 sq.m, representing a year-on-year decrease of 16%. This decrease was largely influenced by the unusual volume recorded in the first quarter of 2023, which included two of the top 10 deals ever recorded. Consequently, the average deal size contracted by 41% to 6,100 sq.m. In terms of geographical distribution, activity remained mainly concentrated in the Greater Lisbon and Porto regions, with each accounting for 33% of take-up.
Portugal Investment MarketBeat
Commercial real estate investment volumes for the first quarter of 2024 reached €218 million, representing a year-on-year (YoY) decrease of 9%. However, when accounting for deals closed during April, total volume amounts to €400 million, a YoY growth of 59%.
Lisbon Office MarketBeat
In the first quarter of 2024, the Greater Lisbon office market registered 41 new lease deals, with a total take-up volume of 73,730 sq.m, four times higher than the same period of 2023. Similarly, the average deal size increased 3.5 times, to 1,800 sq.m.
Porto Office MarketBeat
In the first quarter of the year, the Greater Porto office sector registered 22 new deals and a take-up of 18,040 sq.m, more than double the same period of 2023. Likewise, the average deal size increased to 820 sq.m, a year-on-year increase of 39%.
Portugal Retail MarketBeat
Despite no new retail schemes being completed during the first quarter of 2023, the pipeline for the next 3 years continues to reflect increased development volumes of retail parks. Among the forecasted 89,900 sq.m of GLA, 68% is allocated to this segment, such as Nova Vila Retail Park (Portimão) and Ponta Delgada Retail Park. The remaining area is allocated to shopping centers, namely City Center Covilhã and the Centro Colombo (Lisbon) redevelopment and expansion.
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Andreia Almeida • 24/06/2024