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Property price valuations in Portugal rise to pre-pandemic figures

Bank valuations of properties rise to 1,111 euros per m2 in April, the same value as before the coronavirus pandemic.

In April, banks in Portugal once again increased the value of the valuations carried out in the field of housing credit and mortgages. After having dropped one euro in March, compared to the previous month, to 1,110 euros per square metre (m2), the value measured in bank valuations has now increased by one euro, to 1,111 euros per m2. This is the same record figure, therefore, that was seen in February, in the pre-pandemic period before the country was paralysed by the coronavirus.

"This value (1,111 euros per m2) represents an increase of 0.1% compared to March and an increase of 9.5% compared to the same month of the previous year. It should be noted that, despite the exceptional circumstances, the number of bank valuations reported amounted to around 22 thousand". This figure is 2% less than in the same period and 12% less than in the previous month, reads the note released by the National Statistics Institute in Portugal (INE).

The biggest monthly increase was registered in the Autonomous Region of the Azores (3.2%) while the sharpest decrease was observed in Alentejo (-0.2%). In year-on-year terms, the largest increase occurred in the Lisbon Metropolitan Area (11%) and the smallest Alentejo (0.0%).

In the case of apartments, the median value of the bank valuation was 1,210 euros per m2, up 10.3% on April last year (113 euros) and 0.1% on the previous month (1 euro).

"The highest value was observed in the Lisbon Metropolitan Area (1,490 per m2) and the lowest in the Alentejo (858/m2). Compared with the previous month, the value rose 0.1%, with the Central region showing the highest rise (2%) and the Autonomous Region of Madeira the sharpest fall (-0.7%). In year-on-year terms, the Lisbon Metropolitan Area showed the most significant growth (11.9%) and the Algarve the lowest (4.7%)", concludes INE.

By typology, the median value of the valuation for T2 (2-bedroom) properties rose 1 euro, to 1,235 euros per m2, while T3 (3-bedroom) fell 1 euro, to 1,093 euros per m2. According to the INE, these two typologies accounted for 80.7% of the apartment valuations in April.

Looking at houses and villas, the median value of the bank valuation was 939 euros per m2 in April, up 6.7% (59 euros) on the same period and 1.7% (16 euros) on the previous month.

"The highest values were observed in the Algarve (1,602 euros per m2) and in the Lisbon Metropolitan Area (1,462 euros per m2), with the Alentejo registering the lowest value (763 euros per m2).

Source: / June 10, 2020

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