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.
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.