Portugal Bank Valuations Hit Record High in April

Discover how the bank valuation of houses in Portugal has been steadily rising since December, reaching an all-time high of 1,596 euros per square meter in April.

In April 2024, the housing market in Portugal continued to show robust growth, with bank valuations reaching record highs. According to data from the National Statistics Institute (INE), the median value of bank assessments on housing stood at 1,596 euros per square meter (euros/m²), marking a 1% increase from the previous month. This upward trend has been consistent for five consecutive months, with a year-on-year increase of 7.04%, the largest since November 2023.

Apartments saw a median valuation of 1,769 euros/m², reflecting a 6.1% increase compared to the same period last year. Meanwhile, houses were valued at 1,248 euros/m², showing a significant 9.8% growth year-on-year. In terms of regional variations, Greater Lisbon and the Algarve recorded the highest apartment prices at 2,338 euros/m² and 2,092 euros/m², respectively, while the Center had the lowest valuation at 1,215 euros/m².

The Autonomous Region of Madeira experienced the most substantial year-on-year growth at 19.5%, contrasting with the Algarve's modest 1.2% increase. Greater Lisbon, the Algarve, the Setúbal Peninsula, the Alentejo Litoral, and Madeira all had assessment values well above the national median. Similarly, in the housing market, Greater Lisbon and the Algarve led in terms of highest values, while Centro and Alentejo had the lowest valuations.

Madeira also showed significant growth at 16.7%, with the Algarve having the lowest year-on-year increase at 3%. Regions such as Alto Alentejo, Beiras, Serra da Estrela, Alto Tâmega, and Barroso recorded notably lower assessment values compared to the national median. Overall, the housing market in Portugal continues to demonstrate strength and resilience, with certain regions outperforming others in terms of valuation growth.

The latest data from INE highlights the ongoing growth and dynamism of the Portuguese real estate market, with bank valuations reaching new heights. The regional variations in housing prices underscore the diversity and opportunities present in the market, making it an attractive destination for investors and homebuyers alike.