Portuguese Property Valuations Hit New Record High in July
The median value of bank valuations for residential properties in Portugal reached €1,945 per square meter in July, an increase of €34 from the previous month and a year-on-year surge of 18.7%, according to data released by the Instituto Nacional de Estatística (INE). This figure represents an acceleration from the 18.1% annual growth rate recorded in June, indicating continued momentum in the national housing market. The statistics are based on approximately 33,800 bank valuations conducted in July, a volume that is up 3.8% from June and 3.7% from the same month in 2024.
The INE report provides a detailed analysis of the market's performance, highlighting significant regional variations in valuation growth. When comparing with the previous month, the Alentejo region registered the most substantial increase at 4.2%. On a year-on-year basis, the Península de Setúbal saw the most dramatic rise, with valuations climbing by 24.2%. The data indicates that no region experienced a decrease in property valuations during this period, underscoring the widespread nature of the market's upward trend.
For apartments, the median valuation stood at €2,254 per square meter, a 24.0% increase compared to July 2024. The highest prices were recorded in the Grande Lisboa area, at €2,990 per square meter, and the Algarve, at €2,642 per square meter. The Alentejo region reported the lowest median value for apartments at €1,419 per square meter. The Península de Setúbal also led in year-on-year growth for apartments, with a 25.6% increase. Month-over-month, apartment valuations rose by 2.1%, with the Autonomous Region of the Azores showing the strongest growth at 3.0%.
An analysis by property type reveals that one-bedroom (T1) apartments saw their median valuation increase by €71 to €2,866 per square meter. Two-bedroom (T2) and three-bedroom (T3) apartments rose by €50 and €18, reaching €2,317 and €1,942 per square meter, respectively. These three typologies constituted 92.8% of all apartment valuations in the reporting period. For houses, the median valuation was €1,414 per square meter, a 10.4% increase from July 2024. Grande Lisboa (€2,707/m²) and the Algarve (€2,505/m²) also led in this category, while the Centro and Alentejo regions had the lowest values. The Azores posted the highest year-on-year growth for houses at 17.8%.
Economist João Moreira from a Lisbon-based financial consultancy commented on the findings, stating, "The sustained increase in bank valuations reflects strong underlying demand, both from domestic and international buyers. The growth in Setúbal is particularly noteworthy, as it suggests a ripple effect from the high-priced Lisbon market, with buyers seeking relative affordability in adjacent regions." The government has been monitoring the housing market closely, with a spokesperson from the Ministry of Housing noting that they are analyzing the data to ensure market stability. Historical data shows that the current growth rates are approaching the peaks seen before the 2008 financial crisis, though market fundamentals are now considered more robust. The INE is expected to release its next comprehensive housing price index report in October, which will provide further insights into market dynamics. Stay informed on Lisbon property market developments at realestate-lisbon.com.
