Portugal real estate market: Bank Appraisal Values Surge by 8.6%

Get the latest insights from the National Statistics Institute (INE) on the 8.6% surge in average bank appraisal values for housing in Portugal, reaching 1,521 euros per square meter (m2) in all regions.

The Portugal real estate market saw a significant increase in bank appraisal values in 2023, with all regions recording growth. According to data from the National Statistics Institute (INE), the average bank appraisal value for housing in Portugal increased by 8.6% compared to 2022, reaching 1,521 euros per square meter (m2). The Autonomous Region of Madeira showed the most intense variation at 20.2%, while Central Portugal had the smallest increase at 6.2%.

The median bank appraisal value for apartments increased by 8.7% to 1,693 euros/m2, and for houses by 6.2% to 1,185 euros/m2. The West and Tagus Valley region showed the most significant increase compared to the previous month at 2.1%, with the only decrease recorded in the Autonomous Region of the Azores at -0.2%.

Compared to December 2022, the median value of assessments grew by 5.3%, with the most intense variation observed in the Autonomous Region of Madeira at 15.5% and the lowest in the Algarve at 0.9%. The highest values were recorded in Greater Lisbon at 2,277 euros/m2 and in the Algarve at 2,054 euros/m2, with Central recording the lowest value at 1,130 euros/m2.

The Madeira region showed the most significant year-on-year growth at 17.4%, while the Azores was the only region to decline compared to the previous year at -2.7%. The appraised value of apartments rose by 0.4% compared to November, with Oeste and Vale do Tejo recording the biggest increase at 1.2% and the Algarve the biggest decrease at -0.5%.

The median assessment value for a two-bedroom apartment rose to 1,750 euros/m2, while three-bedroom apartments fell to 1,504 euros/m2. These typologies represented 80.1% of apartment valuations carried out in December. The median value of the bank valuation of homes was 1,210 euros/m2 in December 2023, representing a year-on-year increase of 5.4%.

The highest values were observed in Greater Lisbon at 2,196 euros/m2 and in the Algarve at 2,088 euros/m2, with Central and Alentejo recording the lowest values at 937 euros/m2 and 990 euros/m2, respectively. Alentejo showed the highest year-on-year growth at 13.3%, with reductions recorded in the Algarve at -1.3% and Greater Lisbon at -0.5%.

In December, the assessed value of houses rose by 0.9%, with Oeste Vale do Tejo and Alentejo showing the highest growth at 3.7% both, and the sharpest decline occurring in Azores at -1.7%. The median value of T2 homes rose to 1,174 euros/m2, T3 types rose to 1,204 euros/m2, and T4s fell to 1,238 euros/m2. These typologies represented 89.8% of housing assessments carried out in the period under analysis.

The Portugal real estate market experienced significant growth in bank appraisal values in 2023, with all regions showing increases. The data from the National Statistics Institute (INE) highlights the varying growth rates across different regions, with the Autonomous Region of Madeira and Central Portugal showing the most intense and smallest increases, respectively.