The average price for property in Portugal has risen again, with the latest figures showing property values increasing for the month of February.

According to a report by the National Statistics Institute of Portugal (INE), the average price of bank valuations for property in Portugal rose to €1,109 per square metre (m2).  This rise represents an increase of 5.7% compared to the values recorded in February of last year and also a month on month rise of 0.3%, or €3.

The improvement in the average prices for real estate in Portugal demonstrates the continued recovery of the housing market in the country, which had previously been adversely affected by the global economic crisis.

Now the general economy in Portugal is gaining pace, as unemployment decreases and the long term economic outlook improves and all of these factors have helped to increase confidence in the market as a whole which has boosted the property sector further.

While average prices across Portugal have risen, it has been Lisbon where the highest gains have been seen with the INE noting that in “the Lisbon Metropolitan Area (variation of 0.5% and a valuation of €1,348 euros/m2) contributed most to the on month rise seen across the country.”

The popular second home destination of the Algarve saw excellent increases in house prices, however it was not such positive news for the islands of Madeira and the Azores where there drops in average property valuations compared to January.

Compared to the same month of 2016, INE said, the average valuation across the country rose by 5.7% in February (5.6% up on the previous month), and the Algarve, with a rise of 8.7% (5.7% the previous month) experiencing the biggest rise.

While house prices continue to rise, property in Portugal as a whole and in the Algarve remains competitively priced in comparison to other countries within Europe.  The relatively low living costs in Portugal, combined with the favourable tax conditions, especially for no habitual residents, also has helped to contribute to making Portugal a top choice not only for holidays, but increasingly for property investment.