House Valuations Reach New High of €1,226

27 February 2019

Average bank valuations of housing in Portugal started the year at a new high: 1,226 euros per square meter. The Algarve and Lisbon are the two most expensive regions in the country.

The banks’ valuations of homes for the purpose of granting mortgages began 2019 at new highs. The average value per square meter reached 1,226 euros in January, up by 0.5% compared to December and 6.3% year-on-year, according to the National Statistics Institute (INE). Real estate valuations have risen for the last 22 months.

The highest increase in assessments in January was in the region of the Alentejo. The “steepest” decline came in the Autonomous Region of Madeira, INE said in a statement published Wednesday. The Algarve and Lisbon are still the two most expensive regions in the country.

The average value per square meter for flats rose to 1,288 euros. The highest increase came in the Algarve, where the price per square meter reached 1,597 euros, 30% above the average for Portugal as a whole.

Bank valuations of houses reach new high

The average valuation per square meter for houses touched 1,125 euros. The Algarve again saw the highest prices, where the average valuation reached 1,600 euros, above that of the Metropolitan Area of ​​Lisbon, where the price stood at 1,547 euros.

The figures represent the average value per square meter of valuations of homes by Portugal’s banks within the context of loan applications for mortgages. The increases reflect the rise in real estate prices in Portugal, at a time when the level of mortgages returned to highs last seen in 2010 (9.835 billion euros), even after the Bank of Portugal’s macro-prudential measures seeking to restrain the growth in credit.

Original Story: Economia Online – Flávio Nunes

Photo: Hugo Amaral / ECO

Translation and editing: Richard Turner