Month after month, house valuations in Portugal continue to break records. In July, bank valuations increased 0.7% compared to June, and 16.1% year-on-year. That means that, per square metre, house valuations have now hit a historical high of €1,417.
Published last week by the National Institute of Statistics (INE), the data shows that the largest rise was in the Algarve, with a median growth of 18.7%. The region also presented the highest year-on-year growth at 22.5%.
For apartments, the median value of bank appraisal nationwide was €1,575 per square metre, a 16.7% increase compared to July 2021. The highest increase was in the Algarve region, at €1,887/sqm, representing a year-on-year growth of 17.9%.
For houses, bank valuations rose 13.1%, reaching €1,129/sqm in July. With the highest year-on-year growth once more, at 22.5%, the Algarve registered a median bank valuation of €1,994/sqm.
While bank valuations have traditionally been more conservative, properties in the Algarve have continuously been valued above their sale price, despite rising house prices year after year.
Properties are valued based on several factors:
• The overall condition of the property.
• The square footage of the property.
• The property's amenities (such as number of bedrooms, if it has a garden, a pool, and so on).
• The sale price of similar properties in the same area in the last 6-12 months.
• The supply and demand in the area.
• How hot or cold the prevailing market is, and which way it's moving.
Thinking about buying or selling property in the Algarve? Speak to the experts at Algarve Home Sales for reliable advice about the local real estate market.