Alentejo Leads Portugal with 4.2% Monthly Rise in Property Valuations
The National Statistics Institute (INE) has released its report on bank housing valuations for July 2025, revealing a nationwide year-on-year increase of 18.7%. The statistical announcement indicates that the median valuation for residential property in Portugal has reached €1,945 per square meter. The data, compiled from 33,800 bank valuations conducted during the month, shows a 3.8% increase in the volume of valuations compared to the previous month, June 2025. The source of the data is the survey on bank valuation of housing, which is a key indicator for the real estate and financial sectors. The methodology used involves collecting data on all bank valuations carried out for purposes such as granting mortgage credit.
The most significant numerical finding in the monthly analysis was the performance of the Alentejo region, which recorded a 4.2% increase in its median valuation compared to June, the highest of any region in the country. This increase was primarily driven by the single-family homes segment. The geographic breakdown shows that despite this strong monthly growth, Alentejo continues to have the lowest median property values in Portugal. The median value for apartments in the region was €1,419 per square meter, while houses were valued at €1,149 per square meter. In contrast, Greater Lisbon and the Algarve remain the most expensive regions, with apartment valuations at €2,990 and €2,642 per square meter, respectively.
A time period comparison shows the national median value has risen 18.7% since July of the previous year, indicating strong and sustained market appreciation across the country. The market segment analysis reveals that T2 (two-bedroom) and T3 (three-bedroom) apartment types were the most frequently evaluated, reflecting persistent demand for family-sized homes. An industry expert from a leading real estate consultancy commented that the surge in Alentejo could signal a growing trend of buyers looking for value and space outside of the main urban centers, a shift potentially accelerated by remote work possibilities.
The government and regulatory bodies like the Bank of Portugal monitor this data closely as an indicator of the health of the housing market and potential risks in the banking sector. The historical context shows that while Lisbon and the Algarve have traditionally led price growth, other regions are now showing significant dynamism. The INE will continue its monthly data collection, with the next report expected to provide further insights into the market's trajectory for the remainder of 2025. Stay informed on Lisbon property market developments at realestate-lisbon.com.
