Median Bank Valuation for Housing Reaches Record €1,965 per Square Meter
The median bank valuation for housing in Portugal reached a new historical high in August 2025, settling at €1,965 per square meter. This latest statistical announcement from the National Statistics Institute (INE) confirms the continuation of an upward trend in property values used for lending purposes.
The data, which is a key indicator for the mortgage market, was compiled from valuation reports conducted by banking institutions across the country during the month of August. The methodology involves collecting the median value of all residential property appraisals submitted to the financial system for the purpose of granting credit. This provides a comprehensive and reliable measure of the market's underlying asset value.
The specific numerical finding of €1,965 per square meter represents a €20 increase from the median value recorded in July 2025. This marks the 21st consecutive month that the median bank valuation has risen, underscoring a prolonged period of appreciation in the Portuguese housing market. The year-over-year increase was approximately 9.8%, further highlighting the sustained growth trajectory.
A geographic breakdown of the data reveals significant regional disparities. The Algarve remains the region with the highest median valuation in the country, recorded at €2,450 per square meter. The Lisbon Metropolitan Area also registered values well above the national median, driven by high prices in the capital itself, where valuations in prime central districts frequently surpass €4,000 per square meter. The region of Setúbal also showed strong performance, reflecting its growing popularity.
In a month-over-month comparison, all regions of mainland Portugal showed an increase in median valuations. The most significant monthly growth was observed in the Alentejo region, while the North also posted strong gains. This indicates that while prime markets like Lisbon and the Algarve lead in absolute value, other regions are also experiencing upward pressure on prices.
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An analysis of the market by property type shows that valuations for apartments (apartamentos) grew at a slightly faster pace than for houses (moradias) in August. The median valuation for apartments nationwide stood at €2,150 per square meter, while for houses it was €1,780 per square meter.
An economist from a major Portuguese bank commented on the findings, stating, “The consistent increase in bank valuations is a direct reflection of the persistent imbalance between supply and demand in the housing market. As long as the construction of new homes does not keep pace with demand from both domestic and international buyers, we can expect this upward trend in valuations to continue.”
The government has not issued a direct response to this specific INE report, but the data will inform ongoing discussions about housing policy and financial stability. Historically, the current 21-month period of growth is one of the longest on record since the INE began tracking this data. The next report from the INE, covering September's data, is anticipated in late October and will be watched closely by the financial and real estate sectors.
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