The total number of office searches increased from 750,254 in the second half of 2023 to 1,215,817 in the first half of 2024. This substantial rise highlights a growing interest in office space, reflecting broader trends in the post-pandemic work environment.

When analyzing the monthly data, October 2023 saw the highest number of searches in the second half of that year, with 123,283 searches recorded. However, January 2024 outpaced this figure significantly, with a staggering 333,275 searches—more than double the amount observed in October. This sharp increase in the first month of 2024 underscores the renewed interest in office spaces as businesses return to more traditional work setups.

Imovirtual attributes this trend to companies encouraging a return to the office after pandemic-related shifts to remote work. Many organizations have implemented policies requiring more regular in-office attendance, with some increasing the mandatory number of office days from one to three per week. This change is likely to contribute to the heightened demand for office spaces, as businesses seek to accommodate their employees in the physical workspace once again.

The study also highlights regional trends in office space demand, focusing on Portugal’s two largest cities: Lisbon and Porto. In both cities, demand grew during this period, though the increases were more modest compared to the national average. In Lisbon, office space searches increased by 19%, rising from 67,336 in the second half of 2023 to 79,772 in the first half of 2024. Beyond just a rise in demand, Lisbon also saw a growth in office space occupancy, with nearly 120,000 square meters occupied in the first half of 2024, compared to 112,000 square meters in 2023. This performance was bolstered by significant moves, including relocations by the European University, the Bank of Portugal, and Caixa Geral de Depósitos.

Porto experienced a similar trend, with a 17% increase in office searches, rising from 37,009 in the second half of 2023 to 43,188 in the first half of 2024. Despite being slightly behind Lisbon, Porto’s steady growth reflects the ongoing expansion of its office market.

Overall, since 2016, the office markets in both Lisbon and Porto have seen consistent growth, except during the pandemic years.

In terms of office size, the average space sought in the second half of 2023 was 137 square meters, slightly decreasing to 129 square meters in the first half of 2024. Among cities, Setúbal stood out with larger office spaces, boasting an average of 175 square meters, the highest in the country.

This upward trend in office space demand reflects broader shifts in workplace policies and the economic recovery post-pandemic, with businesses seeking to strike a balance between remote and in-office work models.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes