THE ASSESSMENT of banks in housing in Portugal

THE BANK VALUATION OF REAL ESTATE HAS INCREASED TO EUR 1 458 PER SQUARE METRE

The median value of bank valuations for houses was EUR 1,458 per square metre in December 2022, EUR 9 per square metre higher than in the previous month.

Year-on-year, the rate of change was 13.5% (13.9% in November). It is worth noting that the number of bank assessments considered fell for the seventh consecutive month to around 24,200, a reduction of 20.2 % compared with the same period of the previous year and 27.0% less than in May last year, the month in which the series peak was recorded.

In 2022, the median assessment value was EUR 1,400/m², which represents an increase of 13.7%
compared to the previous year.

Housing

In December, the median value of bank appraisals, carried out in connection with loan applications for the purchase of residential property, was
1,458 per square metre (euros/m²), an increase of €9 (0.6%) compared to November.
The highest increase compared to the previous month was recorded in the Algarve (1.8%) and the lowest in the Alentejo (0.4%).
Compared to the same period of the previous year, the median value of valuations increased by 13.5%, with the highest increase in the Algarve (18.1%) and the lowest in the North (11.6%).

Flats

During the month, the median bank valuation of flats was €1,633/m², having increased by 15.1% compared to December 2021. The highest values were observed in the Algarve (€2,026/sqm) and in the Lisbon metropolitan area (€1,939/sqm), with the Alentejo recording the lowest value.
Alentejo recorded the lowest value (1,057 euros/m²). The autonomous region of Madeira recorded the highest annual growth
(18.5 %), and the lowest (13.2 %) in the North.
Compared to the previous month, the value of valued goods increased by 1.4 %, with the highest increase recorded in the Autonomous Region of Madeira (3.4 %).
The highest increase was recorded in the autonomous region of Madeira (3.3 %) and the lowest in the autonomous region of the Azores (0.9 %). The median assessment value of two-bedroom flats increased by 9 euros to 1,629 euros/m² and that of three-bedroom flats by 25 euros to 1,447 euros/m².
Taken together, these typologies accounted for 76.7% of the flat valuations carried out during the period.

Villas

The median bank valuation of houses was 1,148 euros/sqm in December, which represents an increase of 11.5% compared to the same month of the previous year. The highest values were observed in the Algarve (2,115 euros/sqm) and in the Lisbon metropolitan area (1,997 euros/sqm), while the lowest values were in the Alentejo and the Centre (951 euros/sqm and 960 euros/sqm, respectively).

The autonomous region of Madeira showed the highest year-on-year growth (21.7%) and the lowest was recorded in the North (10.2%).
Compared to the previous month, the assessment value remained the same.

The autonomous region of the Azores experienced the highest growth (2.9%), with the only decrease in the North (-0.1%). The median value of dwellings fell by 34 euros to 1,042 euros/m², that of three-bedroom dwellings fell by 6 euros to 1,100 euros/m² and that of four-bedroom dwellings rose by 19 euros to 1,291 euros/m².
Together, these typologies accounted for 87.0 % of assessments.

Analysis by regions

According to the Median Bank's valuation index, in December 2022, the Algarve, Lisbon Metropolitan Region, Alentejo Litoral and the Autonomous Region of Madeira had valuation values of 40.3%, 33.7%, 4.9% and 2.0%, respectively, above the median for the country. Beiras and Serra da Estrela was the region
region with the lowest value compared to the country median (-49.2%).

Number of bank assessments

For the calculation of the median value of bank valuations in December 2022, 24,193 valuations were considered (15,369 flats and 8,824 houses), which is 20.2% less than in the same period of 2021, and 27.0% less than in May last year, the month in which the series maximum was recorded.
Compared to the previous period, there were 1,361 fewer bank assessments, which corresponds to a decrease of 5.3%.

source: INE.PT