12 de February, 2025
The coworking market in Europe, particularly in Portugal, has emerged as a dynamic and resilient segment within the commercial real estate sector. The increasing demand for flexible office spaces, driven by structural shifts in work culture, technological advancements, and a growing startup ecosystem, presents a unique investment opportunity. This article provides an analytical, data-driven perspective on the coworking industry in Portugal and Europe, assessing market size, growth drivers, risks, and potential returns for institutional and private investors.
Also, discover the Flex Space Fund, an investment opportunity in an area eligible for the Portugal Golden Visa!
The concept of coworking emerged as an alternative to the traditional office model, gaining momentum with the rise of remote and hybrid work. Once seen as a niche market catering to freelancers and startups, coworking space has become an essential part of corporate strategies.
Globally, the coworking market is expected to reach $49.8 billion by 2030, with a CAGR (annual growth rate) of 17.8% between 2023 and 2030 (Research and Markets). In Europe, coworking spaces already account for 12% of commercial office stock in major cities (JLL).
Portugal, positioned as a key hub for remote work, startups, and digital nomads, has become one of the fastest-growing coworking markets in Europe. With rising foreign direct investment (FDI) and governmental incentives to attract entrepreneurs and multinational firms, the demand for flexible workspaces continues to increase.
The European coworking market has been expanding rapidly, with key trends driving growth:
According to Mordor Intelligence, the coworking sector in Europe is projected to grow at a rate of 5-6% annually, with specific hotspots emerging in Southern Europe, particularly in Portugal and Spain.
Lisbon has positioned itself as a top 10 global startup ecosystem, attracting entrepreneurs, venture capital, and remote workers. Startups in Portugal raised over €1.5 billion in funding in 2023, with significant growth projected for the coming years (StartupBlink).
Key factors making Lisbon attractive for coworking investment:
While Lisbon dominates the coworking market, Porto, Braga, and Coimbra are emerging as alternative hubs due to lower operating costs and increased demand from Portuguese and foreign professionals. The occupancy rate in coworking spaces in these cities exceeds 75%, compared to an average office vacancy rate of 20-25% (JLL Research).
The flexible workspace industry has outperformed traditional office spaces, with coworking occupancy rates consistently above 75%, even as corporate office vacancies rise. High-end coworking spaces report margins of 25-30%, making them one of the most profitable commercial real estate segments.
While global players like WeWork and IWG dominate the flexible workspace sector, regional operators have gained significant market share in Europe. The coworking industry is fragmented, providing investment opportunities in local, premium operators that cater to specific market segments.
Compared to traditional office leases, coworking spaces yield 20-40% higher rental income per square meter, given their ability to optimize space utilization and charge premium membership fees. Investment funds specializing in coworking report IRRs between 9% and 13%, making the sector competitive with other commercial real estate assets.
Investors must consider:
The shift towards distributed work models is permanent. As enterprises reduce long-term office commitments, coworking will become a default option, further expanding demand.
Coworking is merging with hospitality (hotel coworking spaces) and retail (mall-based coworking hubs),** diversifying its revenue streams** and increasing occupancy rates.
Advancements in AI-powered workspace management, IoT, and smart leasing models will improve efficiency, driving investor confidence.
Based on the data, coworking presents a high-growth, resilient investment opportunity. The industry benefits from:
✅ Structural shifts in work culture, favoring flexible office models.
✅ Portugal’s economic and startup boom, supporting long-term demand.
✅ Above-average yields compared to traditional office real estate.
✅ Expansion of premium coworking offerings, increasing profitability.
However, investors must assess operator quality, market positioning, and macroeconomic risks before entering the sector.
📌 Final Thought: As companies continue to embrace hybrid work models and Portugal cements its position as a global business hub, coworking investments stand as a compelling option for those seeking stable returns and long-term growth in the European real estate market.
[1] Research and Markets: Global Coworking Market Report (2023-2030)
[2] JLL Future of Work Report (2023)
[3] StartupBlink: Global Startup Ecosystem Rankings
[4] Mordor Intelligence: Coworking Industry in Europe
[5] Nomad List: Digital Nomad Destinations Ranking
Investing in coworking real estate in Portugal and Europe is no longer speculative—it is a fundamental shift in commercial real estate. The sector is backed by economic, technological, and demographic megatrends, making it a robust long-term asset class for institutional and private investors.
For investors looking to capitalize on the growth potential of the coworking sector in Portugal while also obtaining Portuguese citizenship, the Flex Space Fund presents a strategic opportunity. As a Golden Visa-eligible investment fund, it offers a powerful combination of capital returns and access to European residency.
At Atlantic Bridge, we handle the entire process, ensuring a smooth and efficient journey. Don’t miss this window of opportunity!
Learn more about the Flex Space Fund or speak with our consultants to discover how to turn this investment into a passport to new global possibilities.
Author:
Silvia Resende
