Lisbon Property Values Skyrocket: Bank Appraisals Jump 18.1% Year-on-Year

Lisbon's Property Market Heats Up: Bank Valuations Soar by 18.1%

Foreign investors holding property in Portugal have received a significant boost as official data confirms a massive surge in property valuations. The median bank appraisal value for homes across the country jumped by a staggering 18.1% in June compared to the previous year, reaching a new record high of €1,911 per square meter. This acceleration in price growth is a clear indicator of the market's sustained momentum and robust investor confidence.

For those invested in the Lisbon metropolitan area, the news is even better. The Greater Lisbon region continues to lead the nation with the highest valuations, where the median appraisal for apartments has climbed to an impressive €2,940 per square meter.

This official data from the National Statistics Institute (INE) is a critical metric, as it directly influences mortgage lending and reflects the real market value recognized by financial institutions. According to Carlos Santos, CEO of real estate agency Zome, "The price of housing in Portugal likely advanced by about 12% in the first half of 2025 alone." This demonstrates that asset appreciation is not slowing down. The report highlights that the Setúbal Peninsula, a key commuter and investment area south of Lisbon, saw the sharpest growth with a 22.8% increase, showcasing the expanding scope of the boom beyond the capital's center.

• Leverage Equity: Existing property owners can leverage this sharp increase in valuation to secure favorable refinancing terms or extract equity for further investment.
• Target Growth Areas: While Lisbon and the Algarve remain top-tier markets, the significant growth in the Setúbal Peninsula and the West and Tejo Valley (up 2.5% in a single month) indicates strong potential in peripheral and emerging locations.
• Anticipate Higher Prices: For prospective buyers, these figures mean that competition is fierce and prices are likely to continue their upward trajectory. Acting decisively is key, as waiting could mean paying a higher price later.
• Focus on Used Properties: With used homes appreciating at a slightly faster rate (13%) than new builds (10%) in the first half of the year, the resale market offers compelling opportunities for strong capital gains.

Explore opportunities with realestate-lisbon.com.