Historic and Ribeirinha District of Lisbon Dominated Market in May

22 June 2018

Lisbon’s Historic and Ribeirinha (riverside) district, which had not yet registered any operations this year, was the main protagonist of the market in May, concentrating 51% of the occupied area.

According to JLL’s Office Flashpoint, the result was boosted by the 4,000 square-meter occupation by LACS co-working, which was the largest transaction of the month and which, together with Arvato’s 1,469 square-meter expansion, also strongly contributed in making the “Business Services” sector the most active of the month, accounting for 65%, followed by the”TMT’s & Utilities” sector, with a share of 26%. For the year, the New Office Area dominates (21% of the occupation), while, on the demand side, the “Business Services” sector is once again the most dynamic (+36%).

Despite the added growth in the historic district, May’s market performance was about 60% below the previous month, while also declining 26% compared to the same month last year.

The report shows that office occupancy in May stood at 8,433 square metres, bringing the total volume traded since the beginning of the year to 69,793 m², with activity up 8% above the same period in 2017.

The deceleration was due to a fall in the number of transactions, to a total of eight, despite an increase of 20% in the average area per operation, to 1,054 m². Since the beginning of the year, 82 office space operations have been completed in Lisbon, with an average area per transaction of 851 m², which again represents a growth of 42% over the previous year.

The consultancy considered the fact that 70% of the area placed in May corresponds to net absorption, as the indicator reached the highest value of the year, accounting for 57% of the total occupation since the beginning of the year, the report highlighted.

According to Mariana Rosa, director of JLL’s Office Agency department, “the fact that net absorption is maintaining its dominant position is good news for the market and the economy as a whole, as it reflects the ongoing trend of business growth. It results from a real increase in demand, either by  existing companies in the area that are taking advantage of the good moment that the country is going through to improve and expand their facilities, as well as the emergence of new companies that want to enter our country, primarily in the areas of shared services and the back-offices of large multinationals.”

Original Story: Diário Imobiliário

Translation: Richard Turner