House evaluations up 13.9% Y-o-Y to €1,380/m2 in May

The average bank evaluation in applications for housing loans was €1,380 per square meter in May, up 13.9% year-on-year and €24 more than in April, Statistics Portugal (INE) said on Monday.

According to the INE, the year-on-year rate of change of 13.9% in May was higher than the 13.0% recorded in April.

The highest year-on-year change was recorded in the Algarve (18.0%) and the lowest in the Autonomous Region of the Azores (6.8%).

The largest increase over the previous month was recorded in the Autonomous Region of Madeira (1.8%), while the only region with a negative year-on-year change was the Azores (-0.3%).

In the month under review, the average value of bank appraisals of flats was €1,529 per square metre, having increased 15.3% in comparison to May 2021. Compared to the previous month, the appraisal value rose 1.5%.

The average value of the bank evaluation of the houses was €1.104/m2 in May, which represents an increase of 9.1% compared to the same month of the previous year. Compared to April, the assessment value increased by 1.9%.

An analysis by regions shows that, in May 2022, the Algarve, the Área Metropolitana de Lisboa and the Alentejo Litoral showed valuation values 33.3%, 32.5% and 5.3%, respectively, higher than the median for the country.

On the contrary, the Beiras and Serra da Estrela region was the region with the lowest value in relation to the median for the country (-50.0%).

According to INE, the number of bank valuations considered rose to 33,130, representing an increase of 8.0% relative to the same period last year, of which 21,215 were flats and 11,915 were houses.

In comparison to the previous period, there were 787 more bank evaluations, which corresponds to an increase of 2.4%.