Banks’ property valuations continue increasing, now at €1,205 per square meter
Between August and September, there was again an increase in banks real-estate valuation. Algarve takes the lead in the price increase rate, which has been growing in the country for 18 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 €1,205 per square meter, which has been the highest value recorded since 2008, with an increasing pattern that has reached its 18th month in a row now. Data from the Portuguese Office for National Statistics (INE), shows that between August and September there was a 0.8% increase in the price per square meter in comparison to the previous month of August. It has increased by 6.2% in comparison to August 2017.
For the 18th consecutive month, there has been an upward trend in prices per square meter, which hadn’t been this high since September 2008.
Apartments prices registered a year-on-year 6.0% increase
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.
After increasing more than 12% in the first quarter of the year, the average price rise went up by 11.2% in the second quarter of the year.
Algarve is leading the price increase rate, as in the region prices increased 9.7% in comparison to the previous year, amounting to a €139 difference on average, standing on €1,567 per square meter, the highest in the whole country.
The Northern region recorded the second highest increase (8.1%), reaching €1,090 per square meter, while Lisbon Metropolitan Area saw prices increase by 6.8% standing now at €1,475 per square meter.