Median valuations for home loans in July rise for 11th straight month

The median value of valuations of residential properties in July rose for an 11th consecutive month, to a new historical maximum of €1,417 per square metre, up €10 on June and up 16.1% year on year, according to the National Statistics Institute (INE).

The INE report, released on Tuesday, contains calculations based on the 28,635 valuations carried out by credit institutions as part of the processing of applications for home loans – a number down 6.0% on July of 2021 – of which 18,313 were flats and 10,322 houses.

The largest month-on-month increase in the median value was in the Azores region (1.9%), whilst the smallest variation was in the Alentejo (0.2%). The highest year-on-year increase was in the Algarve (18.7%) and the lowest in the Azores (8.1%).

In July, the median value of valuations for flats was €1,575/m2, up 0.8% from June and up 16.7% from July 2021. The median value for houses was €1,129/m2, up 0.6% on the month and 13.1% on the year.

An analysis by NUTS III regions (used for European Union statistical purposes) shows that in July the Algarve, the Lisbon Metropolitan Area and the Coastal Alentejo had median valuations 34.7%, 32.9% and 6.9% higher, respectively, than the national one.

The Beiras and Serra da Estrela region had the lowest value in relation to the national median (49.3% lower).

The INE’s next survey of bank valuations, for August, is due out on September 27.