June registered an increase in banks real-estate valuation. It reached its highest value since 2008, with Lisbon taking the lead in the price increase rate, which has been growing for 15 months now.
Banks have continuously increased the properties’ value while they assess the possibility of conceding credit to potential buyers.
The banks’ valuation reached an average of €1,180 per square meter, which has been the highest value recorded since 2008. Data from the Portuguese Office for National Statistics (INE), shows that in June there was a 0.3% increase in the price per square meter in comparison to the previous month of May. It has increased by 6.1% (€1,178) in comparison to May 2017 (€1,112).
For the 15th consecutive month, there has been an upward trend in prices per square meter, which hadn’t been this high since September 2008.
The evolution in prices highlights the real estate boom that we’ve been witnessing in the country. This rise has also been accompanied by an increase in housing credit applications.
During the first half of 2018, Portugal’s price per square meter rose €30. That means that a 100 square meter sized apartment will now cost €3000 more than it did last year.
Lisbon is leading the price increase rate,Algarve is the most expensive
Lisbon stands out as the city experiencing the strongest price increase, in May and June, as well as in terms of the overall yearly average. In June, banks assessment price per square meter reached €1,447, which translates into a €19 (1.33%) increase in comparison to May and a €55 (3.95%) increase in comparison to last year’s average of €1.392. This is the highest price level registered since April 2010.
The Algarve should also be mentioned, as its prices per square meter have also bloated. Price per square meter increased to €1,503 in June, which represents a €16 (1.08%) rise in comparison to May, and a €52 (3.58%) increase in comparison to the values practiced in December 2017.
This region of the country is registering the highest price per square meter on the national level.
The only region that is presenting a counter-trend is the Azores. In June, the Azores islands’ real estate witnessed a drop of €21 per square meter, reaching €1,035. In May, the average was higher, at €1,065 per square meter. However, in comparison to last year’s values, the region has witnessed as well a rising trend, with a significant €36 valuation.