The banking valuation of houses increased yet again, as it has been for the last 17 months. In August, the price per square meter hit 1.196, the highest since September 2008.
House price per square meter increased for the 17th month in a row, hitting a new high. In August, the price per square meter reached €1.196, according to the Portuguese Office for National Statistics (INE). It has increased nine euros in comparison to the previous month.
The statistics office announced this Thursday that the banking valuation has hit this amount in August. This value represents a 0.8% increase in comparison to the €1.187 registered last month, and a year-on-year increase of 6.6%, according to INE’s report. In August 2017, the price per square meter stood at €1.122, a €74 difference.
It is the highest level recorded since September 2008, the year the report on banking house valuations from INE started.
The new record in price per square meter is accompanying the trend of increasing dynamism in the real estate sector in Portugal, making house prices rise exponentially. After almost hitting a 12% increase in the first quarter of 2018, the average sale price of a house in Portugal increased by 11.2% in the second quarter.
Apartments are still the ones which present the highest prices. In comparison to the previous month, the average price of an apartment valuation increased by nine euros in the month of August, reaching €1.252 per square meter, whereas the townhouses’ valuation went up by €12 to €1.102 per square meter.
Madeira is leading the increase, but Algarve is still the most expensive
The increase was witnessed in all corners of the country, being felt transversally in all regions. But the Region of Madeira, however, was still the one which increased the most, presenting a 2.4% growth rate in the price per square meter in comparison to the previous month, meaning that it went from €1.524 in July to €1.547 in August. The Northern region presented the lowest prices per square meter, with a 0.7% increase, getting at €1.078 in August.
Lisbon region got a lot of attention recently because of the high pressure felt on the city’s real estate, presenting a 0.8% growth rate in comparison to the previous month of July, with average prices standing at €1.468 (€12 more than in July).
That is the second highest house valuation in the country by region, with Algarve taking the lead with an average price per square meter at €1.547, a €23 jump in comparison to July.