Housing appraisals rise to new record high in November

The median for housing valuations carried out by banks in Portugal in November rose to a new historic maximum of €1,272 per square metre, up €21 on the month and up 11.2% on the year, according to figures released on Tuesday by Statistics Portugal (INE).

“In November 2021, the median value of bank appraisals, carried out within the scope of credit applications for the purchase of housing, stood at €1,272 per square metre (euros/m2), an increase of 1.7% on October (1,251 euros/m2),” the release states, adding that “in year-on-year terms, the rate of change increased to 11.2% (10.6% in October).”

According to INE, November saw 29,612 bank appraisals, up 8.7% on the number seen in November of 2020. Of the latest total 18,858 were flats and 10,754 were houses.

All regions showed an increase in comparison to the previous month, with the exception of the Alentejo and the Madeira Autonomous Region, where the numbers were stable.

The largest variations were recorded in the Centre and Algarve regions (month-on-month increases of 2.2% and 2.1% respectively).

In comparison with November 2020, the median of appraisals was up 11.2% on the year, with the largest increase in the Lisbon Metropolitan Area (11.1%) and the smallest in the Azores Autonomous Region (0.5%).

In November, the median value of bank appraisals of flats was €1,401/m2, an increase of 1.2% in October and 11.9% in November 2020.

The highest value for flats was in the Algarve (€1,701/m2) and the lowest in the Alentejo (€905/m2), but it was the Lisbon Metropolitan Area that showed the strongest year-on-year growth (11.6%), while the Azores Autonomous Region saw the lowest (2.0%).

As for houses, the median value of bank appraisals was €1,031/m2 in November, representing a 2.1% increase on the month and an 8.1% increase on the year.

The highest values were observed in the Algarve (€1,758/m2) and in the Lisbon Metropolitan Area (€1,694/m2), with the Alentejo registering the lowest value (€840/m2). The Algarve saw the highest year-on-year growth (10.3%); the lowest was in the Azores (1.2%).

According to the index, in November of this year the Algarve, the Lisbon Metropolitan Area, the Alentejo Coast and the Madeira Autonomous Region had appraisal values above the national median (34%, 32%, 4% and 1% higher, respectively).

The Beiras and Serra da Estrela region was the region with the lowest value in relation to the national median (47% lower).

The INE is o release data on December bank appraisals on January 27.