Bank Valuations of Portuguese Homes Climb 14.2 Percent in a Year to 2,278 Euros per Square Metre, With Greater Lisbon Apartments at 3,525 Euros

Banks valued the homes they were asked to finance at a median of 2,278 euros per square metre in September, 14.2 percent more than a year earlier. The figure comes from the monthly Inquérito à Avaliação Bancária na Habitação (Bank Appraisal Survey on Housing) published today by the Instituto Nacional de Estatística (Statistics Portugal, INE). The median rose by 24 euros, or 1.1 percent, from August's 2,254 euros, while the annual rate eased slightly from 14.7 percent the month before.

INE counted about 32,600 appraisals (20,281 apartments and 12,316 houses), 0.2 percent fewer than in August and 1.2 percent fewer than in September 2025.

Apartments and houses

Apartments were valued at a median of 2,662 euros per square metre, up 15.4 percent in a year. Among them, one-bedroom (T1) flats reached 3,401 euros, two-bedroom (T2) flats 2,758 euros and three-bedroom (T3) flats 2,266 euros; these three types made up 93.3 percent of apartment appraisals. Houses (moradias) were valued at 1,621 euros per square metre, up 11.1 percent.

Region by region

Median values per square metre in September, from INE's tables, with the mainland regions first:

• Grande Lisboa (Greater Lisbon): 3,452 euros, the highest; apartments 3,525 euros
• Algarve: 2,953 euros; apartments 3,010 euros
• Península de Setúbal (Setúbal Peninsula): 2,845 euros, with the fastest annual rise, 18.4 percent
• Norte (North): 1,956 euros
• Oeste e Vale do Tejo (West and Tagus Valley): 1,828 euros, with the biggest monthly rise, 1.6 percent
• Centro (Centre): 1,438 euros
• Alentejo: 1,422 euros, the lowest
• Madeira: 2,642 euros
• Azores: 1,624 euros, after the sharpest monthly fall, 3.2 percent

No region was lower than a year earlier. Worked out from INE's own figures, the slowest annual rises were in the Algarve and the Alentejo, at about 10 percent each. At a finer level, Beira Baixa, Alto Alentejo and Alto Tâmega e Barroso were the cheapest areas, more than 50 percent below the national median.

What a bank appraisal is, and why it matters to you

When you apply for a mortgage, the bank sends a valuer to assess the property it will hold as security. That appraisal is not the asking or sale price: it is the bank's estimate of what the home is worth, and it shapes how much the bank will lend. Under the Banco de Portugal (Bank of Portugal) recommendation on new loans to consumers, the loan-to-value ratio is calculated on whichever is lower: the purchase price or the appraisal value.

• If the valuation comes in below the agreed price, the bank works from the lower figure, so you need more of your own savings to close the gap.
• A rising median does not guarantee your valuation: each home is assessed on its own, and INE notes the figures can partly reflect changes in the kind of homes appraised each month.
• Compare like with like: a regional median is a guide, not a valuation of your flat. A T1 in Greater Lisbon and a house in the Alentejo sit at opposite ends of the scale.

The survey covers seven banks that account for about 90 percent of new mortgage lending, homes of 35 to 600 square metres, and appraisals from the reference month and the two before it, so each monthly figure reflects about a quarter of activity. It is a different measure from the transaction prices behind the municipal house price figures we reported on Saturday. For the cost side of a loan, see our report on how interest now takes more than half of the average mortgage payment. INE's next release is due on 25 November.