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Housing Valuations Increase for 20th Consecutive Month, Reaching New High

28 December 2018

The price per square meter of homes as per bank valuations for housing loans reached a decade-long high. Houses led the increase, while flats remained unchanged.

Bank valuations of homes when evaluating potential mortgage loans increased in November for the 20th consecutive month to a high of at least a decade, in another demonstration of the strength of the Portuguese real estate market. In November, the price per square meter reached an average of 1,215 euros, according to data released Friday by the National Statistics Institute (INE).

The amount represents an increase of €3 per square meter, or 0.2%, over the previous month. Compared with the same period last year, the increase reached 71 euros or 6.2%.

There were differences, however, between the types of homes, as the price of houses was largely responsible for the increase. “When compared to the previous month, the average price of flats in November held steady at 1,277 euros per square meter. The average price of houses, however, rose by €5 to €1,115 per square meter,” the INE’s report explained.

On the other hand, the year-on-year trend has been the reverse. The average price of apartments increased by 7%, while houses increased by 4.8% in November 2018, compared to the same month last year.

Regionally, the highest increase in housing prices was registered in the Azores (+0.7%), with the sharpest decline seen in the Alentejo (-1.5%). The highest year-on-year increase for was in the Algarve (8.8%) and the lowest in Madeira (1.7%).

“According to the average banking valuation price index, in November, the Algarve, the Lisbon Metropolitan Area, the Autonomous Region of Madeira and Alentejo Coast registered growth above that of the national average (30%, 23%, 9% and 3%, respectively). The region of Beiras and Serra da Estrela had the lowest value compared to the national average (-32%),” the INE added.

Original Story: Economia Online – Leonor Mateus Ferreira

Translation: Richard Turner