Bank property valuations rise by €29 per square metre between February and March
The median bank valuation of housing rose by 16.5% year-on-year. The number of appraisal requests for credit purposes increased by 10%.
After declining in the first two months of the year, the number of bank valuations also rose again, reaching 32,800, representing a month-on-month increase of 10.8% (an additional 3,214 requests). However, this figure still reflects a decrease of 10.3% compared to March last year, a period that was particularly dynamic for this type of credit.
The increase in residential property values is mainly explained by pressure between supply and demand.
Concerns over High Prices and Credit for Youth
High house prices, along with the granting of credit to young people up to 35 years old—many of whom benefit from public guarantees (allowing access to up to 100% financing for property purchases) and tax exemptions (particularly IMT and stamp duty)—have raised concerns at the Bank of Portugal (BdP).
These concerns stem from the fact that a large number of real estate transactions are being carried out at high price levels while interest rates remain relatively low. In the event of rising interest rates, as has already begun to happen, this could create difficulties for borrowers.
Given the rise in prices and the substantial reinforcement of the public guarantee decided by the government last week, it is expected that the banking supervisor will soon take measures to curb lending to higher-risk borrowers (in terms of the ratio between income and loan amounts).
Regional Variations and Market Segments
Regarding bank valuations recorded in March, the Autonomous Region of Madeira posted the most significant monthly increase (2.1%), with no declines recorded. Compared with 12 months earlier (March 2025), the most significant increase was observed in the Setúbal Peninsula (24.8%).
Apartments vs. Houses
By segment, the median bank valuation for apartments stood at €2,511 per square metre, a year-on-year increase of 21.2%. The highest values were recorded in Greater Lisbon (€3,333) and the Algarve (€2,883).
For houses, the median bank valuation reached €1,542 per square metre, representing a 12.6% increase compared to the same month of the previous year. The highest values were observed in Greater Lisbon (€2,838) and the Algarve (€2,755).
Reference link: https://www.publico.pt/2026/04/27/economia/noticia/avaliacao-bancaria-casas-dispara-29-euros-metro-quadrado-fevereiro-marco-2172657
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