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Bank Valuation of Homes Has Been Rising Steadily for More Than a Year

28 May 2018

Banks are giving homes increasingly high values in their assessments in Portugal. The average national bank valuation reached 1,171 euros per square meter (m2) last April, the highest since the beginning of 2011 – when the National Statistics Institute (INE) began to compile the data. This figure – which serves as a benchmark for housing loans – has been steadily rising for the last 13 consecutive months.

“The average bank evaluation stood at 1,171 euros in April, four euros higher than in March,” the INE said in a statement, released today.

This figure represents an average increase of 0.3% over the previous month and of 5.5% compared to April last year. The banks’ valuations of flats increased by another six euros per m2, reaching 1,224 euros. However, house valuations fell by three euros to 1,074 euros per m2.

Houses on Portugal’s islands worth more

The highest generalised increases, occurred in the Autonomous Regions of Azores and Madeira, with growth of 2% and 1.9%, respectively. On the other hand, the only decreases were in mainland Portugal, in the Centre (-0.4%) and the North (-0.3%).

The average value of bank assessments of apartments reached 1,224 euros per square meter. The highest cost per square meter was in the Algarve (1,478 euros per square meter), while the lowest was in the Alentejo (965 euros per square meter).

In April, the average bank valuation for houses reached 1,074 euros per square meter, with the highest values found in the Lisbon Metropolitan Area (1,452 euros per square meter) and in the Algarve (1,426 euros per square meter), with the lowest in the Center (928 euros per square meter).

Original Story: Idealista

Translation: Richard Turner