The value of real estate continues to improve. Appraisals made by banks when granting credit have increased for the 11th consecutive month, reaching a maximum amount since 2011.
Housing prices continue increasing at a steady pace. Housing bank appraisals increased in February for the 11th consecutive month, reaching an average value of 1,109 euros per square meter, according to Statistics Portugal (INE), reaching a maximum value since 2011.
“The average value of bank appraisals, concerning housing credit, stood at 1,109 euros per square meter in February, which corresponds to a quarter-on-quarter change rate of 0.3%”, states the INE. This means prices have been increasing since March, 2016.
“In comparison to the homologous period, the average appraisal value in Portugal saw a 5.7% increase in February“, surpassing the 5.6% registered in January, which translates to an acceleration on the increase in the value banks give real estate. This appraisal is relevant when granting credits; as a general rule, financial institutions grant credit correspondent to 80% of the determined value.
These data reveal the continuing growing tendency of housing prices, since they reflect the banks’ larger openness to granting housing credit — which is possible to see in the decrease of spreads. In 2016, real estate prices increased 7.1% when comparing to the previous year, following the upward trend observed over the past three consecutive years. Because of this evolution, housing appraisals are already similar to its values of July 2011, right after the bailout to Portugal.