Lisbon's Office Market: Q2 Surge Signals Strong Investor Confidence
Foreign investors in commercial real estate should take note of Lisbon's powerful market rebound in the second quarter of 2025. The city's office market posted its best quarter in five years, with a massive 32,000 m² pre-lease by the Bank of Portugal for the Entrecampos 1 project highlighting the strong demand for premium, large-scale office space. This activity brought the total H1 2025 take-up to 84,000 m², signaling a resilient and optimistic outlook for the second half of the year.
This major deal underscores the market's appetite for high-quality new developments and confirms the city's attractiveness for major institutional tenants, a key indicator of market health for investors.
What Foreign Investors Need to Know"Despite a slow start to the year, the solid demand for quality projects is undeniable," stated Frederico Leitão de Sousa, Head of Offices at Savills Portugal. He emphasized that the success of new, well-located developments confirms Lisbon's position as a "competitive and resilient destination in Europe." International companies continue to drive the market, accounting for most of the 16 largest deals in the first half of the year, which is a strong vote of confidence in Lisbon's economic stability.
Actionable Steps for Today's Buyer- Target Premium Developments: The Bank of Portugal deal proves that new, high-spec buildings in prime locations are in high demand. Focus investment on new construction or Grade A refurbishments.
- Focus on Key Submarkets: Outside the CBD, the Western Corridor (16,696 m²) and Parque das Nações (10,361 m²) are the most active zones. These areas offer strong potential for rental growth and tenant demand.
- Leverage International Appeal: With global companies leading the charge, ensuring properties meet international standards for amenities and sustainability can provide a competitive edge.
- Anticipate H2 Momentum: The strong Q2 performance is expected to continue. Investors should prepare for a competitive second half of the year, with a focus on securing assets in high-demand areas.
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