House prices reach a new peak since the Summer of 2010
The assessment made by banks for credit granting purposes increased again in February. It reached a new peak of 1,160 euros per square meter.
A new month, a new increase. The prices at which banks assessed houses when granting credits for buying them reached a new peak in February. The average price for a square meter accelerated to 1,160 euros, the highest amount in almost eight years, signaling an upward trend for house prices in Portugal.
According to data disclosed by Statistics Portugal (INE), this Tuesday, the price per square meter increased by seven euros, in February, to stand at 1,160 euros. This means it is the highest amount since July of 2010.
“This represents a 0.6% increase in relation to January and a year-on-year growth rate of 4.6%”, INE further adds. This seven euros’ increase in a month is the highest since September, when it had a 13 euros’ increase. In February of last year, the increase was of three euros per square meter.
The new maximum set for the assessment of real estate follows the movement of the sale prices of real estate that also keep accelerating in Portugal, but is also a synonym of the banks’ greatest availability to grant credits for that aim — which translates into smaller spreads.
House prices increased at an annual average of 9.2% in 2017, the year in which Portuguese banks made eight billion euros available to purchase houses — the highest amount of the last seven years. This trend continued in January, with families seeking banks to get 634 million euros in loans for house purchases: the highest amount since 2010, in an homologous comparison.
