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Bank Valuations Rose to 1,212 Euros/m2 in May

April 29, 2021 – Ana Custódio

The average residential bank valuation rose by 12 euros in May compared to the month before.

According to the National Statistics Institute’s Survey on Residential Bank Valuations, valuations rose by 8.8% y-o-y (8.0% in April). The number of bank valuations included in the study also increased to about 31,000, up 66% year-on-year.

The INE’s analysis stated that in May 2021, the average bank appraisal within the process for evaluating mortgage applications reached 1,212 euros per square metre, increasing 1.0% compared to April (1,200 euros/m2). Month-on-month, the highest increase was in the Centre (1.0%), with the Autonomous Region of Madeira reporting the sharpest drop (-0.8%).

Average bank appraisals of flats in May stood at 1,326 euros/m2, increasing by 9.4% m-o-m.  The highest figure was in the Lisbon Metropolitan Area (1,586 €/m2), while the lowest was in the Alentejo (851 €/m2).

The INE reported that the median value of the residential bank assessments of houses reached 1,012 €/m2 in May, an increase of 6.2% y-o-y. The highest valuations were in the Algarve (1,633 euros/m2) and the Metropolitan Area of Lisbon (1,606 euros/m2). Portugal’s Centre reported the lowest average valuation (835 euros/m2).

According to the survey, the Lisbon Metropolitan Area, the Algarve and Alentejo Litoral had valuations above the average for Portugal (31%, 29% and 2%, respectively). The least expensive region was Beiras and Serra da Estrela, at 44% below the average.

A total of 30,687 bank valuations were used in the survey in May, up 66.0% y-o-y. According to INE, 19,448 of them were flats, while 11,239 were houses. There were 2,555 more bank evaluations compared to April (+9.1%).

Translation: Richard D K Turner