Economic Context
Portugal’s economy has been on a steady upward trajectory. In 2025, GDP grew by 1.9%, with growth expected to accelerate to 2.3% in 2026 before stabilising in subsequent years. Inflation is also showing signs of moderation, projected to be 2.3% in 2025 and drop below 2.0% in the years ahead. This moderation in inflation is a positive signal for businesses and consumers alike, as it eases cost pressures and reinforces economic stability.
The labour market has remained robust, with unemployment forecast to decline from 6.1% in 2025 to 5.7% in 2026. This decline underscores the strength of Portugal’s economy and its ability to sustain job creation, which is a critical factor in driving demand for office spaces across the country.
Demand Overview: Leasing Activity Slows in Greater Porto
Despite the positive economic indicators, the office leasing market in Greater Porto experienced a notable slowdown in 2025. Annual take-up dropped by 43% year-on-year, totalling just 43,700 sq. m. Q4 2025 saw leasing activity comprising 22 deals, contributing 15,210 sq. m of the annual total.
Key transactions during this period included a significant 3,340 sq. m lease at Viva Offices in Zone 3 by a confidential tenant, and the acquisition of the BUZ building (1,600 sq. m) by co-working operator DeHouse. These transactions highlight the ongoing interest in prime office spaces, even amid a broader slowdown.
Submarket performance revealed that ZEP (Zone 3) and CBD Boavista (Zone 1) were the main contributors, each accounting for nearly a quarter of the total take-up. Matosinhos (Zone 6) closely followed, representing 21% of leasing activity. In terms of sectors, Other Services dominated demand, accounting for 37%, with TMT’s & Utilities coming in second at 16%. This sectoral breakdown demonstrates the diverse range of industries driving office space demand in Porto.
Vacancy Trends: A Slight Decline
The overall vacancy rate in Greater Porto edged down slightly by 0.1 percentage points, settling at 8.8% in Q4 2025. However, vacancy rates varied significantly across submarkets, reflecting the diverse dynamics of the region.
The lowest vacancy rate was in East (Zone 4), where it stood at just 2.2%, indicating strong demand and limited supply in the area. In contrast, ZEP (Zone 3), Matosinhos (Zone 6) and Maia (Zone 7) reported vacancy rates close to 10%.
Rent Trends: Stability Across Submarkets
Prime rents remained stable across all submarkets, showcasing the resilience of the office market even amid slowing leasing activity. The highest rents were recorded in CBD Boavista (Zone 1) at €21.00/sq. m/month, followed by ZEP (Zone 3) at €19.00/sq. m/month.
This stability in rents reflects the steady demand for quality office spaces in prime locations.
Construction Pipeline: Future Growth on the Horizon
The projected pipeline is set to play a significant role in shaping the future of Greater Porto’s office market. In 2025, a total of 41,810 sq. m of new office space was delivered, including three major projects completed in Q4. Among these, Viva Offices was the largest, underscoring the ongoing development activity in Zone 3.
Looking forward, an impressive 119,880 sq. m of new office space is expected to be delivered over the next three years. Of this, 98,580 sq. m is already under construction, and 32% of this space is pre-let, demonstrating strong confidence in future demand. The robust pipeline reflects a forward-looking approach by developers as they cater to the anticipated needs of businesses seeking modern, high-quality office spaces.
