Portugal Real Estate: Bank Appraisals Hit €1,664/m²

In August, bank appraisals for Portugal real estate rose to €1,664/m², marking an 8.2% increase year-on-year. Discover the latest trends.

In August, the median value of bank appraisals for residential properties reached a noteworthy 1,664 euros per square meter (m²), reflecting a year-on-year increase of 126 euros, or 8.2%. This figure also marks a modest rise of 26 euros, equivalent to 1.6%, compared to the preceding month of July, as reported by the National Statistics Institute (INE). 

A closer examination of the data reveals that the most pronounced variation occurred in the West and Tagus Valley regions, which experienced a remarkable surge of 13.2%. Notably, no region reported a decline in appraisal values during this period. The Autonomous Region of the Azores distinguished itself with the most significant month-on-month increase of 3.5%, maintaining a trajectory of growth without any recorded decreases.

In total, approximately 31,700 bank appraisals were conducted in August, representing a slight decrease of 2.7% from July, yet showcasing a robust year-on-year increase of 29.0%. When focusing on apartments specifically, the median appraisal value soared to 1,850 euros per m², marking an impressive 8.4% increase compared to August of the previous year. The highest appraisal values were observed in Greater Lisbon, where the figure reached 2,461 euros/m², followed closely by the Algarve at 2,192 euros/m². In stark contrast, the Centre region recorded the lowest value at 1,213 euros/m².

The Autonomous Region of the Azores again stood out with a remarkable year-on-year growth rate of 13.8%, with no declines noted. When comparing to the previous month, the appraisal value of apartments saw an increase of 1.8%, with the Azores leading the charge at 4.6%, while Madeira experienced a slight dip of 0.3%.

Delving deeper into the specifics, the median appraisal value for one-bedroom apartments rose by 40 euros to reach 2,393 euros/m². Two-bedroom apartments saw an increase of 42 euros, bringing their value to 1,895 euros/m², while three-bedroom apartments experienced a rise of 23 euros, culminating in a value of 1,642 euros/m². Collectively, these categories accounted for an impressive 93.0% of all apartment appraisals conducted in August.

Turning our attention to houses, the median appraisal value stood at 1,297 euros/m², reflecting an 8.4% increase compared to August 2023. The highest values for houses were similarly recorded in Greater Lisbon at 2,420 euros/m² and the Algarve at 2,388 euros/m², while the Centre and Alentejo regions reported the lowest values at 1,019 euros/m² and 1,028 euros/m², respectively. The Autonomous Region of Madeira exhibited the highest year-on-year growth at 25.3%, whereas Alentejo lagged behind with a mere 0.8% increase.

In terms of month-on-month changes, the appraisal value of houses rose by 1.2%, with the Azores again showcasing the highest growth at 3.0%, without any recorded declines. The median value for two-bedroom homes increased by 26 euros to 1,301 euros/m², three-bedroom homes saw a rise of 16 euros to 1,266 euros/m², and four-bedroom homes experienced a modest increase of seven euros to 1,360 euros/m². Together, these categories constituted 88.8% of the home appraisals conducted during the analyzed period.

In a broader context, regions such as Greater Lisbon, the Algarve, the Autonomous Region of Madeira, the Setúbal Peninsula, and the Alentejo Coast boasted appraisal values exceeding the national median by 47.6%, 33.9%, 15.9%, 13.3%, and 10.3%, respectively. Conversely, the regions of Alto Alentejo, Beiras and Serra da Estrela, and Alto Tâmega and Barroso reported the lowest values in relation to the national median, with staggering deficits of -50.4%, -46.2%, and -45.9%, respectively. 

The appraisal landscape in August paints a picture of resilience and growth across various regions, with notable disparities that reflect the intricate dynamics of the Portugal real estate market.