Lisbon Leads Record-High Property Valuations as Prices Surge 18% in Portugal

Lisbon Property Valuations Hit Record €2,940/sqm Amid Market Surge

Foreign investors eyeing the Lisbon property market have received a clear signal of its unabated growth: bank valuations, a key metric for mortgage lending, have soared. In June, the median valuation for an apartment in the Greater Lisbon area hit a new record of €2,940 per square meter, according to the National Statistics Institute (INE). This is part of a nationwide surge that saw median valuations jump by over 18% year-on-year to €1,911 per square meter.

This data is critical for investors, as it directly influences financing conditions and reflects the market's underlying strength. The sharp increase confirms that demand, particularly in prime areas like Lisbon, continues to drive prices to new heights.

The most significant takeaway is the market's powerful momentum. 'An 18% annual increase in valuations is substantial,' states a mortgage advisor from a leading Portuguese bank. 'For foreign buyers, this means that while property values are rising, the underlying asset is seen as increasingly secure by financial institutions. Banks are confident in the market's trajectory, which is a positive sign for long-term investment.' The data also shows a 22.9% jump in apartment valuations nationally, indicating strong demand in the segment most popular with international buyers.

The Setúbal Peninsula, just south of Lisbon, showed the highest growth rate, signaling a strategic opportunity for investors looking for the next hotspot with strong appreciation potential.

• Act on Financing: With valuations rising, securing pre-approval for a mortgage is more important than ever. This gives you a clear budget and allows you to act quickly when a good opportunity arises.
• Analyze Regional Data: While Lisbon leads in price, the highest growth is in adjacent areas like the Setúbal Peninsula. Consider these emerging locations for potentially higher capital appreciation.
• Leverage Valuation Data: Use this official data as a benchmark when negotiating prices. Knowing the bank's valuation for a specific area gives you a powerful tool to ensure you're not overpaying.
• Focus on Apartments: The 22.9% valuation increase in apartments, compared to 9.2% for houses, underscores where the most intense market activity is. This segment offers strong liquidity and rental demand.

Explore opportunities with realestate-lisbon.com.