Bank Valuation of Housing Rises 17.7% in September to €1,995 per Square Meter
The median value of bank valuations in the housing sector was €1,995 per square meter in September, marking a year-on-year increase of 17.7% and a rise of €30 (1.5%) compared to the previous month, the Instituto Nacional de Estatística (INE) reported this Friday. This data, derived from bank assessments conducted during the mortgage lending process, reflects a continued and significant appreciation of property values across the country. The figures are based on a substantial sample of around 33,000 bank valuations, a volume that itself represents a 4.2% increase compared to the number of valuations in August, though it shows a slight year-on-year decrease of 0.4% in the number of properties assessed.
The analysis provided by the national statistics authority points to a heterogeneous but broadly positive landscape. The most intense year-on-year growth was registered in the Península de Setúbal, where valuations surged by an impressive 25.9%. This region, which includes municipalities like Almada, Seixal, and Sesimbra, has become a focal point for real estate activity, benefiting from its proximity to the capital and a growing demand for suburban living. For those tracking regional performance, our geographic deep dives offer further context on this trend. Meanwhile, on a month-to-month basis, the Autonomous Region of the Açores exhibited the most pronounced increase, with a 2.9% rise, indicating a dynamic market in the archipelago. The INE's report highlighted that no region experienced a decrease in valuations in either the year-on-year or month-on-month comparison, underscoring the widespread nature of the current market upswing.
Economists are interpreting these figures as a sign of the market's sustained resilience amidst broader European economic shifts. A senior economist at a major Portuguese bank stated, "The data from INE confirms the underlying strength of the housing market. The 17.7% homologous rise is substantial and points to a demand that continues to outpace the available housing supply, particularly in high-demand areas." This sentiment is echoed by real estate professionals who observe the market on a daily basis. Understanding these dynamics is crucial for anyone considering a purchase, and our main buying guide provides a comprehensive overview of the process.
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The methodology employed by INE for this statistical release involves collecting data on bank valuations of residential properties that are the subject of mortgage credit applications. This provides a timely and reliable indicator of market trends, often preceding official transaction price data. The median value of €1,995 per square meter is a national aggregate, with significant variations between different municipalities and property types. For instance, valuations for apartments typically follow a different trajectory than those for houses, a factor that investors must consider. The increase in the number of valuations from August to September suggests a seasonal rebound in market activity following the summer holiday period.
The report from INE is a key piece of market intelligence for financial institutions, developers, and policymakers. For banks, the rising valuations increase the collateral value of their mortgage portfolios but also require careful risk management. For developers, it signals strong potential returns on new projects, although it also reflects rising land and construction costs. For those looking to enter the market, especially first-time buyers, the data highlights the increasing financial barrier to entry. Navigating the financial aspects of a purchase is complex, and consulting with English-speaking accountants can be invaluable for foreign buyers.
The consistent upward trend in property valuations has been a defining feature of the Portuguese real estate market for several years. This growth has been fueled by a combination of factors, including strong foreign investment, a thriving tourism sector that boosts rental demand, and a favorable quality of life that attracts expatriates and retirees. While the pace of growth may moderate in the future, the fundamental drivers of the market appear to remain intact. The data for September 2025 indicates that, for now, the trajectory remains firmly positive. Stay informed on Lisbon property market developments at realestate-lisbon.com.