Portuguese Bank Valuations for Housing Reach New Historic High of €1,965/m²
The median bank valuation for housing in Portugal reached a new historical peak of €1,965 per square meter in August, according to data released this Monday by the National Statistics Institute (INE). This figure represents an 18.1% increase compared to August 2024 and a 2.8% rise over the previous month of July 2025, continuing a consistent upward trend throughout the year.
The data is derived from 31,700 bank valuations conducted in the context of housing loan applications. While the total number of valuations saw a slight decrease of 6.4% compared to July, the monetary value assigned to properties continued its climb. The August 2025 figure marks a significant jump from the €1,664 per square meter recorded a year prior and a 10% increase from the €1,774 per square meter valuation seen in January 2025.
The increase was most pronounced in the apartment segment. The median valuation for apartments reached €2,269 per square meter, a year-on-year increase of approximately 23%. For houses, the median valuation was €1,430 per square meter, reflecting a more moderate but still strong growth rate.
On a regional basis, the Greater Lisbon area and the Algarve continue to lead with the highest property valuations in the country. However, the most significant growth was observed in the Setúbal Peninsula. This region, part of the Lisbon metropolitan area, recorded a 26.4% year-on-year increase in apartment valuations and a 16.5% increase for houses. The median valuation in Setúbal reached €2,351 per square meter.
Despite this strong growth, Setúbal's valuation levels remain below those of the most expensive regions. The median value in Greater Lisbon was reported at €2,958 per square meter, while the Algarve stood at €2,628 per square meter. The persistent rise in bank valuations is a key indicator of the health and momentum of the Portuguese property market.
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An economist from a major Portuguese bank commented on the data, stating, "The continued increase in bank appraisals reflects the fundamental supply and demand dynamics in the market. Financial institutions are adjusting their valuations in line with the observed transaction prices. The growth in areas like the Setúbal Peninsula is particularly noteworthy, as it signals a ripple effect from the core Lisbon market, where affordability constraints are pushing buyers and investors into adjacent municipalities."
The INE's report underscores the ongoing appreciation of residential real estate assets across Portugal, a trend that has been consistent despite broader economic shifts. The valuation data is closely watched by developers, investors, and policymakers as it directly influences lending capacity and serves as a barometer for market sentiment.
The August report follows other recent data showing that overall house prices also reached a new record in the second quarter of the year, with the total value of homes sold exceeding €10 billion.
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