Summary and analysis of Portugal's current industrial real estate market conditions.
Insight
Portugal Industrial Market Dynamics, Q1 2025
The first quarter of the year registered a 49% year-on-year decrease in I&L area take-up, with Oeiras-Cascais leading with around one-third of total occupancy, followed by Montijo-Alcochete (23%) and Castanheira-Azambuja (20%).
Despite the decrease in take-up, prime rents grew in several zones, reaching €6.75/sq.m./month in Oeiras-Cascais.
The market outlook remains positive, due to a persistent mismatch between available space and tenant requirements, with significant unmet demand from third-party logistics providers and manufacturing firms.