In August, the average price of bank appraisals for housing in Portugal was 1,664 euros per square meter. This is a 126 euro gain over the same period last year or almost 8.2%. The National Statistics Institute (INE) released this information which shows that the country’s housing sector is still going upwards.
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Regional Change In Bank Appraisals For Housing
The value increased by 26 euros in just one month from July to August which is an increase of 1.6%. This is not a significant increase but it shows that home prices continue to rise. This trend shows that there is still a lot of demand for houses in Portugal between buyers, tenants, and citizens.
According to the report of the National Statistics Institute:
The median value of bank appraisals on housing reached €1,664 per square meter in August 2024, €26 more than in the previous month (an increase of 1.6%). On a year-on-year basis, the rate of change stood at 8.2% (7.4% in July).
The increase in bank appraisals for housing did not happen the same way in all regions. In August, the biggest increase was in the West and Tagus Valley regions where values went up by 13.2%. No region saw a drop in value which showed that growth was happening across the country.
The Azores had the biggest rise in prices with an increase of 3.5% from July to August. The appraisals were 2.7% lower in August than in July. They were still 29% higher than August 2023. In total, 31,700 bank appraisals were completed.
Increase In Apartments Appraisals
When looking at different types of housing, apartments saw the largest increases in value. In August, the median value of appraisals for apartments was 1,850 euros per m2 which is an 8.4% rise compared to last year.
One bedroom apartments showed the biggest rise in value that was increased by 40 euros to 2,393 euros per m2. Two bedroom apartments went up by 42 euros and reached 1,895 euros per m2.
Three bedroom apartments had an increase of 23 euros, bringing their value to 1,642 euros per m2. The highest values for apartments were in Greater Lisbon where appraisals reached 2,461 euros per m2.
In the Algarve, prices have increased to 2,192 euros per m2. The lowest values were in the Centre of Portugal which is 1,213 euros per m2.
The Azores has the largest increase in apartment values which is a 13.8% rise compared to last year. Apartment prices went up by 1.8% every month with the Azores increasing prices with a 4.6% rise.
Madeira was the only region that saw a small drop, with apartment values decreasing by 0.3% from July to August.
Rise In Appraisals For Houses
Houses also saw an increase in appraisal values. August saw an 8.4% increase in the median home appraisal value from the previous year, reaching 1,297 euros per square meter.
House values were highest in Greater Lisbon and Portugal’s Algarve area. Greater Lisbon is 2,420 euros per square meter, whereas the Algarve offers 2,388 euros per square meter.
The Alentejo and Central regions of Portugal had the lowest home prices, with 1,028 and 1,019 euros per m2, respectively.
Madeira saw the highest yearly growth in house values with an increase of 25.3%. On the other hand, Alentejo had the smallest growth with only a 0.8% rise compared to last year.
House prices increased by 1.2% between July and August with the Azores once again having a significant 3% increase. Unlike apartments, there was no area where house prices dropped from July to August, which indicates ongoing demand for houses across the country.
Regional Differences Across The Country
The national median bank appraisals for housing was 1,664 euros per m2. Several regions had values well above this figure. Greater Lisbon had appraisal values that were 47.6% higher than the national average.
The Algarve had values that were 33.9% higher. The Setúbal Peninsula and the Alentejo Coast also exceeded the national median by 13.3% and 10.3%, respectively.
On the other side, several regions performed far worse than the national average. Appraisals in Alto Alentejo, Beiras and Serra da Estrela, and Alto Tâmega and Barroso were nearly 45% less than the national median.
These differences highlight the ongoing challenges faced by some regions in attracting buyers and growing their property markets.
Although Portugal’s housing sector is continuing to grow but some areas are falling behind. With prices gradually improving, Portugal’s housing market remains attractive to both buyers and investors. However, the variances in growth among regions demonstrate that the market is far from uniform.
