Bank appraisal of homes accelerates to new record and approaches 2,000 euros per square meter
The median value of bank appraisals accelerated in September, setting a new historical high. The price at which banks value homes for mortgage lending reached an unprecedented 1,995 euros per square meter, just five euros shy of the 2,000 euros per square meter mark, according to data from the National Statistics Institute (INE) released this Friday. This represents a significant milestone for the Portuguese property market, reflecting sustained and robust growth that has caught the attention of both domestic and international observers. The detailed report from the INE provides a granular look at the forces driving this appreciation across different regions and property types, offering critical data points for anyone involved in the real estate sector.
“The median bank appraisal value for housing was 1,995 euros per square meter in September 2025, which is 30 euros more than what was observed in the preceding month. In year-over-year terms, the rate of variation stood at 17.7%, compared to 18.1% in August,” the National Statistics Institute (INE) stated in its official release. The institute also highlighted that “the number of bank appraisals considered was approximately 33,000, which represents an increase of 4.2% compared to the previous month and a decrease of 0.4% in year-over-year terms.” This high volume of appraisals indicates a continuously active market, with transactions requiring financing proceeding at a brisk pace. For more analysis on these trends, our Real Estate Market Insights Blog offers further commentary.
In a pattern consistent with previous months, the Península de Setúbal registered the largest year-over-year variation, where the appraisal value of homes increased by 25.9% compared to the same month last year. The fact that no region recorded a decrease in valuations underscores the widespread dynamism of the real estate market. The median bank appraisal value for apartments in September was 2,307 euros per square meter, marking a growth of 22.6% compared to September 2024. The highest values were observed in the Grande Lisboa region (3,025 euros/m2) and the Algarve (2,740 euros/m2). In contrast, the Centro region presented the lowest value at 1,512 euros/m2.
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On a monthly basis, the valuation of T1 apartments increased by 104 euros to 3,018 euros/m2, while T2 and T3 apartments saw increases of 46 euros and 14 euros, respectively, reaching 2,390 euros/m2 and 1,971 euros/m2. According to the INE, these three typologies collectively represented 92.9% of the apartment appraisals conducted during the period under review. For houses, the median bank appraisal value stood at 1,459 euros/m2 in September, which is 12.1% higher than the values recorded in the same period last year. Once again, the highest values were observed in Grande Lisboa (2,729 euros/m2) and the Algarve (2,486 euros/m2). The Centro and Alentejo regions recorded the lowest values, at 1,081 euros/m2 and 1,139 euros/m2, respectively.
“According to the Index of the median bank appraisal value, in September 2025, Grande Lisboa, the Algarve, the Península de Setúbal, the Autonomous Region of Madeira, and the Alentejo Litoral presented appraisal values that were higher than the national median by 50.1%, 34.1%, 20.4%, 15.8%, and 8.6%, respectively,” the INE report details. This data is crucial for understanding regional disparities and is a valuable resource for anyone navigating the complexities of property acquisition. For those dealing with the financial aspects of buying, our guide on financial concerns can be very helpful. The regions of Alto Alentejo, Beiras e Serra da Estrela, and Beira Baixa showed the lowest values in relation to the country's median, at -53.2%, -51.0%, and -50.8%, respectively, as the INE concluded in its statement.
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