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Residential Bank Valuations Reach New Post-2008 High

25 January 2019

The average value increased to 1,220 euros per m2 in December, which represents the 21st month of consecutive increases.

Residential bank valuations increased to an average of 1,220 euros per square meter (m2) in December, an increase of five euros compared to November and a new high, the INE reported today. This figure represents the 21st consecutive monthly increase, and a new high since 2008 (the beginning of the series).

Compared to November 2018, the average valuation of flats in December rose by €7 to € 1,284 per square meter, while the value of houses increased by €4 to €1,119 per square meter. The highest valuation for flats was in the Algarve (1,593 euros/m2), with the lowest in the Alentejo (1,014 euros/m2). Compared to November, the Azores had the highest increase (+2.7%), and the Centre had the biggest decrease (-0.9%). Year-on-year, the Azores also had the highest growth (+10.8%).

The average valuation for two-bedroom flats stood at 1,294 euros/m2, an increase of eight euros compared to November, while valuations rose by three euros to 1,211 euros/m2 for three-bedroom apartments. Two- and three-bedroom flats represent 82.8% of the total number of valuations conducted in December.

Bank valuations for houses reached 1,119 euros/m2, with the highest figures ​​in the Algarve (1,565 euros/m2) and the Lisbon Metropolitan Area (1,554 euros/m2) and the lowest in the Centre (969 euros / m2 ).

Compared to November, bank valuations in the Algarve rose fastest (+2.1%), while falling by 0.4% in the North and the Lisbon Metropolitan Area.

Compared to the month before, valuations for three-bedroom flats rose by 9 euros to 1,103 euros/m2, while those for four-bedroom flats fell by 8 euros to 1,155 euros/m2. Three- and four-bedroom houses accounted for 72% of all housing valuations for December.

Compared to December 2017, the Metropolitan Area of ​​Lisbon had the highest increase (+11.3%), while the Alentejo had the lowest (+2.0%).

At the regional level, the highest increase in residential bank valuations was in the Autonomous Region of Madeira (+1.4%). The only region to witness a decline was the Centre, with a decrease of 0.2%.

Compared to December 2017, average residential bank valuations for housing as a whole increased by 6.1% (70 euros), with flats and houses rising by 7% and 4.9%, respectively. The highest annual rate of change for all valuations was in the Algarve (+9.2%) and the lowest in the Autonomous Region of Madeira (+2.8%).

Original Story: Público / Lusa

Photo: Manuel Roberto

Translation: Richard Turner