Portugal's Median Property Valuation Reaches Record €1,995 per Square Meter
A recent statistical announcement from Portugal's National Statistics Institute (INE) has confirmed a new record for housing valuations across the country. The median bank valuation reached €1,995 per square meter in September 2025, a significant indicator of the market's continued upward trajectory. This data is derived from approximately 33,000 valuations conducted by banks as part of the mortgage approval process, providing a reliable snapshot of market values.
The source of the data, INE, is the official government body for statistics, and its methodology is based on a comprehensive survey of lending institutions nationwide. The specific numerical findings reveal a 1.5% increase from the previous month and a substantial 17.7% year-over-year growth, highlighting the rapid pace of appreciation in the Portuguese property market. These figures are essential for anyone following market trends news.
The geographic breakdown shows that the highest values are concentrated in key investment areas. The Greater Lisbon region leads, with valuations 50.1% above the national median. The Algarve follows at 34.1% above, and the Setúbal Peninsula is 20.4% higher. This data confirms the continued desirability of these regions for both residential and investment purposes. A time period comparison shows a consistent and accelerating trend of price increases over the past several years.
A market segment analysis indicates that apartments experienced the most significant jump, with a median valuation of €2,307 per square meter, up 22.6% from the previous year. The Setúbal Peninsula saw the most dramatic growth in this segment, with a 28.5% annual increase. Detached houses also saw a healthy rise of 12.1% year-over-year. Industry expert commentary suggests this trend is driven by a combination of strong demand, including from foreign buyers, and a persistent shortage of housing supply.
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The government and regulatory bodies are closely monitoring these trends. The rising valuations, while positive for property owners, increase the pressure on the housing market and make it more difficult for new buyers to enter, which could prompt a policy response. For potential investors, understanding these dynamics is crucial. Consulting with agents who specialize in international clients can provide a significant advantage.
The historical context of Portugal's property market includes periods of rapid growth, and the current data suggests the market is in a strong upward phase. No future data collection timeline was included in the announcement, but INE typically releases these reports on a monthly basis, providing ongoing insights. For a deeper understanding of what these numbers mean for your investment, our market intelligence and analysis blog is a key resource.
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