Lisbon Property Appraisals Hit New High, A Key Signal for Foreign Investors
In a clear sign of the market's strength, official bank valuations for Portuguese property have shattered previous records, reaching a median of €1,911 per square meter in June—an 18% surge in just one year. For foreign investors, this is a critical metric as it directly impacts financing and signals strong capital growth in key areas like Lisbon.
What Foreign Investors Need to KnowThe data from Portugal's National Statistics Institute (INE) shows that Lisbon continues to be the most valuable market. The median appraisal for apartments in the Greater Lisbon area has reached an impressive €2,940 per square meter. A simulated quote from a property investment consultant states: "These rising valuations confirm that investing in Lisbon real estate continues to be a profitable venture. However, it also means that the 'loan-to-value' ratio offered by banks will be based on these higher figures, requiring investors to have more substantial capital for down payments."
Actionable Steps for Today's Buyer- Leverage for Negotiation: While valuations are high, you can use the official appraisal report as a solid basis for your offer, ensuring you don't overpay relative to the bank's assessment.
- Budget for a Higher Down Payment: With property values rising, the required 20-30% down payment will be a larger absolute amount. Plan your finances accordingly.
- Explore Growth Areas: Note the 17.2% valuation growth in the Setúbal Peninsula. Look at areas adjacent to Lisbon for potentially higher short-term capital appreciation.
- Act Decisively: The 18% year-on-year increase indicates that delaying a purchase can result in significantly higher costs. If your finances are in order, moving forward can lock in current values.
The robust increase in property valuations underscores the health and investment appeal of the Portuguese real estate market. Explore opportunities with realestate-lisbon.com.
