Portugal Real Estate: Appraisal Value Reaches €1,721

In the ever-evolving landscape of the Portuguese real estate market, recent data reveals a noteworthy surge in bank appraisal values for residential properties, now standing at an impressive 1,721 euros per square meter. This figure marks a substantial increase of 12.9% compared to the previous year, underscoring the robust demand and escalating prices within the sector.

Particularly striking is the performance of the Autonomous Region of Madeira, which has emerged as a frontrunner in this upward trajectory, showcasing the highest increases both on a year-on-year and month-on-month basis. The median value of bank appraisals for housing, a critical benchmark for prospective homeowners seeking financing, has continued its ascent, with October's figures reflecting a 1.5% rise from September, translating to an additional 26 euros per square meter.

The National Institute of Statistics has provided compelling insights, indicating that no region in Portugal experienced a decline in appraisal values during this period. Specifically, the appraisal value of apartments saw a commendable increase of 2.0%, with Madeira leading the charge at a remarkable 5.0% uptick. Notably, the median appraisal value for T1 apartments surged by 56 euros to reach 2,500 euros/m2, while T2 and T3 apartments also demonstrated positive trends, rising by 30 euros and 40 euros, respectively.

Conversely, the housing segment exhibited a more tempered growth of 1.2%, with the Alentejo region recording the most significant increase at 2.6%. However, the Center region was the sole area to report a decrease, albeit a modest one at -1.6%. The median value for T2 houses experienced a slight decline of 10 euros, settling at 1,323 euros per square meter, while T3 houses appreciated by 26 euros to 1,304 euros, and T4 houses saw a negligible drop of 1 euro to 1,344 euros.

In a broader context, the year-on-year comparison with October 2023 reveals a national median appraisal value increase of 12%, with Madeira again leading with a remarkable 17.4% growth. The median bank appraisal value for apartments reached 1,920 euros per square meter, reflecting a 12.9% increase from the previous year. The highest values were concentrated in Greater Lisbon and the Algarve, while the Center region reported the lowest figures.

For houses, the median bank appraisal value stood at 1,317 euros per square meter, representing a 9.7% increase from 2023. The Algarve and Greater Lisbon continued to dominate with the highest values, whereas the Center and Alentejo regions lagged behind. Notably, the Algarve exhibited the most substantial year-on-year growth at 16.0%, with no recorded declines.

In October alone, a total of 34,900 bank appraisals were conducted, reflecting a 5.5% increase from the previous month and an impressive 29.9% rise compared to October of the previous year. This data paints a vivid picture of a thriving real estate market, characterized by resilience and an insatiable appetite for property investment across the nation.