Portuguese Bank Valuations Hit New Record with 18.7% Annual Increase in July
The median bank valuation for residential property in Portugal reached a new national record of €1,945 per square meter in July. This figure represents a historic year-on-year increase of 18.7%, accelerating from the 18.1% growth recorded in June, according to official data released on Tuesday by the National Statistics Institute (INE). The market has now seen 20 consecutive months of monthly price increases, with a 1.78% rise in July compared to the previous month.
The data, based on approximately 33,800 bank valuations, confirms the housing market's continued upward trajectory despite a high interest rate environment. This level of growth is the most significant since the INE began its current data series in January 2012. The total number of valuations conducted in July also increased by 3.7% compared to the same month last year.
Apartments are the primary driver of this market acceleration. The median valuation for apartments rose to €2,254 per square meter, a 24% increase over July of the previous year. This reflects sustained high demand in the country's urban centers. The Greater Lisbon area continues to be the most expensive region for apartments, with a median valuation of €2,990 per square meter, representing a 24.1% year-on-year growth. The Algarve region followed, with a median of €2,642 per square meter, up 21%.
In contrast, the Alentejo region reported the lowest apartment valuations at €1,419 per square meter, highlighting the significant territorial disparities in the Portuguese property market. The Setúbal Peninsula recorded the highest year-on-year growth for apartments at 25.6%. Among different apartment types, one-bedroom (T1) units saw valuations climb to €2,866 per square meter, while T2s reached €2,317 and T3s stood at €1,942 per square meter.
The market for single-family homes, or moradias, also experienced significant appreciation, with a median valuation of €1,414 per square meter in July, an increase of 10.4% from the previous year. Greater Lisbon also led this segment, with a median valuation of €2,707 per square meter, followed by the Algarve at €2,505. The most affordable regions for houses were the Center and Alentejo, with values of €1,053 and €1,149 per square meter, respectively.
The INE report underscores a deepening regional polarization. Property values in Greater Lisbon are 52% above the national median, while the Algarve and the Setúbal Peninsula are 34.5% and 18.8% higher, respectively. Conversely, interior regions such as Beiras e Serra da Estrela and Terras de Trás-os-Montes have valuations approximately 50% below the national median. This trend is attributed to regional economic dynamics, internal migration patterns, and the concentration of housing demand in metropolitan and tourist areas.
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