Bank Valuations for Housing in Portugal Near €2,000 per Square Meter
The median value of bank valuations for housing reached €1,995 per square meter in September, marking a year-over-year increase of 17.7% and a €30 (1.5%) rise from the previous month, the National Statistics Institute (INE) reported this Friday. The analysis considered approximately 33,000 bank valuations, a figure that represents a 4.2% increase compared to August but a 0.4% decrease from the same period last year.
The data was sourced from financial institutions across the country as part of their mortgage lending activities. The methodology involves collecting the median valuation values assigned to properties that are the subject of credit applications. This provides a key indicator of price trends in the residential market. The most significant year-over-year increase was recorded in the Península de Setúbal (+25.9%), while the Autonomous Region of the Azores showed the most substantial month-over-month growth (+2.9%). No region registered a decline in annual terms.
In September, the median valuation for apartments stood at €2,307 per square meter, a value 22.6% higher than that recorded in the same month of 2024. The highest values were observed in Grande Lisboa (€3,025/m²) and the Algarve (€2,740/m²), with the Centro region reporting the lowest value at €1,512/m². The Península de Setúbal demonstrated the most expressive annual growth at 28.5%. Compared to the previous month, the valuation of apartments rose by 1.7%, with the Alentejo recording the largest increase of 5.0%.
For houses, the median bank valuation was €1,459/m² in September, an increase of 12.1% compared to the same month last year. The highest values were recorded in Grande Lisboa (€2,729/m²) and the Algarve (€2,486/m²). The Oeste e Vale do Tejo region showed the largest annual growth at 19.5%. Compared to the previous month, the valuation of houses increased by 2.0%, with the Oeste e Vale do Tejo region again leading with the highest growth of 3.3%.
An analysis by property type shows that the median value for T1 apartments increased by €104 to €3,018/m², while T2 and T3 apartments rose by €46 and €14, to €2,390/m² and €1,971/m², respectively. These three typologies represented 92.9% of apartment valuations. For houses, T2 properties increased by €48 to €1,443/m², T3s rose by €24 to €1,425/m², and T4s grew by €26 to €1,555/m². These typologies accounted for 88.8% of house valuations.
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According to a real estate market analyst commenting on the INE data, "The sustained increase in valuations, particularly in areas adjacent to major urban centers like the Península de Setúbal, reflects ongoing supply constraints and persistent buyer demand, both domestic and international." This trend is a key factor for those looking into investment properties.
The index of median bank valuation by NUTS III regions indicated that Grande Lisboa, the Algarve, Península de Setúbal, Madeira, and Alentejo Litoral had valuation levels above the national median by 50.1%, 34.1%, 20.4%, 15.8%, and 8.6%, respectively. In contrast, the regions of Alto Alentejo, Beiras e Serra da Estrela, and Beira Baixa showed values significantly below the national median. These statistics are crucial for understanding regional disparities and are often reviewed in our Market Insights reports.
The government and financial institutions monitor these figures closely as they influence housing affordability and financial stability. The data from INE is a primary source for policy-making and risk assessment within the banking sector. For those navigating the complexities of property acquisition, understanding these trends is essential. Further guidance on the financial aspects can be found in our Financial Concerns buying guide.
The historical context shows a consistent upward trend in property valuations over the past several years, driven by economic growth, tourism, and foreign investment. The current figures represent a continuation of this pattern, even amidst changing global economic conditions. The INE is expected to release its next report for October's data in the coming month, which will be watched closely by the market.
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