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Housing Prices Reach Highest Level on Record

29 August 2018

The value of housing bought with bank loans increased again, reaching an average price of 1187 euros per square meter in July, the highest since 2008. The north of the country was the region that appreciated the most, but the Algarve continues to be the most expensive region for buying a home.

The average value of bank assessments of housing purchased using mortgages has now been increasing for 16 consecutive months. In July, according to new data from the National Statistics Institute (INE), the number reached its highest level since 2008, when the INE began to make the data available.

The average value per home in Portugal currently stands at 1,187 euros per square meter, up by seven euros compared to June and another 70 euros compared to the same period in 2017.

For flats, the average bank valuation reached 1,243 euros per square meter in July, an increase of five euros compared to the previous month. Houses rose more significantly, up by 13 euros to 1,090 euros per square meter.

Algarve is the most expensive region

At the regional level, the north of the country saw the greatest appreciation and the highest year-on-year rate of change: the average price of housing rose 7.9 percent in relation to July 2017. In turn, the lowest increase was registered in the Alentejo.

The Algarve remains the most expensive region in the country for buying a home, with the price reaching 1,524 euros per square meter. The Algarve was also the region where banks gave flats the highest appraisals, reaching 1,550 euros per square meter, 25 euros more than the previous year and 161 euros more than July 2017. The Autonomous Region of Madeira and the Azores registered the only decreases compared to the figures for June.

The Lisbon Metropolitan Area is the region with the second highest housing prices, but the price of houses (not flats) already exceeds those in the Algarve, with the price at 1,520 euros per square meter: 2.6% more than in June and 12.2 percent compared to June 2017 figures.

The centre region continues to be the least expensive, with the value of housing purchased using bank loans reaching 973 euros.

Original Story: RTP

Translation: Richard Turner