Remote Work Adoption in Portugal Reaches 21.8%, Driving Office Market Transformation
A report presented in Lisbon on October 14 reveals that 1,146,100 people, or 21.8% of Portugal's employed population, are currently working remotely. This figure, which has stabilized since mid-2022, indicates a structural shift in the labor market, with significant consequences for the urban and real estate sectors. The data, gathered from over 160 business leaders, shows that while 21.9% of employees are fully remote, 41.7% have adopted a hybrid model, which 56% of professionals consider the ideal arrangement. This trend is a key feature in current real estate market insights.
The study highlights that large companies are leading the adoption of remote work, with only 10% not offering any remote options. The technology sector demonstrates the greatest flexibility, where 56% of professionals work remotely more than three days a week. The real estate sector itself has seen significant adoption, with 45.6% of its workforce participating in remote work arrangements. This shift is fueling the growth of the flexible office market, with coworking and flex-offices now comprising between 5% and 10% of the total office market. In 2024, 1,435 workstations were contracted in this model, with an additional 450 in the first half of 2025.
Lisbon is identified in the report as a "laboratory for this change." The capital is reportedly adapting with the development of smart neighborhoods and sustainable mobility solutions to meet new demands. The flexibility of office spaces has become a critical factor in attracting foreign investment, with the report noting that 20% of new jobs in the Lisbon region are created by international companies seeking "ready-to-use" offices. This makes understanding the commercial property landscape essential, a service provided by agents focused on international clients.
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The impact of these changes on labor law is also under review. At the report's presentation, Minister of Labor Maria do Rosário Palma Ramalho confirmed that the government is moving to reform the Labor Code, calling it a "historic opportunity" to modernize a system still based on an industrial model. She stated that the current hybrid remote work model has "very difficult application in the current Labor Code" and that a reform is an "urgency." The proposed changes are currently in discussion with social partners.
This digital evolution is reshaping how and where people work, directly influencing investment and development strategies in the commercial real estate sector. The rise of PropTech and flexible office solutions is a direct response to these new workforce dynamics. Investors and developers are closely monitoring these trends as they plan future projects. For more on how technology is shaping the industry, visit our section on real estate technology.
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