Market Trends of Portugal Facility Management Industry
This section covers the major market trends shaping the Portugal Facility Management Market according to our research experts:
Soft Facility Management Services is Expected to Witness Significant Growth
- Soft facility management services include Landscaping, Cleaning, Catering, Admin Support & Reception, and Others. Owing to the demand for a hygiene environment post-pandemic and workspace management with the reopening of commercial businesses, soft facility management services are gaining momentum in the country.
- The growth is predicted to come as a result of the rising pace in new business formation and expansion activity as well as new end-user markets, which would spur a cyclical rebound in commercial building construction.
- Health care, education, and other private facilities are expected to provide the best growth opportunities for soft facility services such as cleaning and admin support. However, office buildings will continue to comprise the most significant commercial cleaning segment.
- One of the defining trends in the commercial and industrial cleaning industry is being driven by concern over health. Cleaning companies are increasingly more focused on cleaning to create healthier indoor environments.
- Furthermore, the sustainable cleaning trend, new cleaning technologies and automation systems, and the introduction of specialty cleaning services help facility management service providers differentiate their company while saving money by reducing time and resources with quality service.
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Commercial End User is Expected to Hold a Significant Market Share
- The commercial end-user covers office buildings constructed or occupied by business services, such as corporate offices of IT and communication and other service providers. As commercial investments suggest higher cash flow potential and often provide better returns on investment, the commercial buildings segment offers lucrative opportunities, making them an attractive form of investment in the region, consequently boosting the Facility Management Market's growth during the forecast period in the country.
- According to Athena Advisors, the international investors are attracted mainly to office sales representing 37% of all commercial property transactions in Lisbon in 2021. Though the Covid caused some uncertainty within the office sector with many businesses adopting home working during the pandemic till mid-2021, the demand for office space began to rise, mainly due to companies relocating, and it is expected that 2022 will see even more office space purchased in Lisbon.
- Furthermore, with limited supply and huge demand from blue-chip corporates and tech start-ups looking to establish a presence in Portugal, especially in Lisbon. Such investments in the commercial office are likely to demand the provision of necessary fitments and interiors and commercial buildings, thereby driving the market in the country's commercial sector. Also, Building Information Modelling is revolutionizing facility management and opening new doors for key players in the country.
- The expansion activities in the country are witnessing the demand for various facility management solutions. For instance, In December 2020, The Webhelp Group announced the opening of two new offices in Portugal, namely in the cities of Lisbon and Braga, which will result in the creation of 500 new jobs. The development of these multilingual hubs allows the group to increase its production capacity in Portugal to meet the needs of international clients.
