The median value at which banks value properties for mortgage loans exceeded €2,000 per square meter in October for the first time since records began, confirming a new historic high and making it even more difficult for families to buy a home.
The median bank valuation for housing reached €2,025 per square meter (euros/m²) in October 2025, an increase of €30 compared to the previous month, according to data released on Tuesday by the Instituto Nacional de Estatísticas (INE) in its Bank Valuation of Housing Survey.
This increase reflects a rise of €30 compared to September figures and a year-on-year increase of 17.7%, the same rate recorded in September, which translates into the 23rd consecutive month of monthly increases and the highest value ever in the statistical series dating back to January 2011.
In contrast to the upward trend in the median bank valuation, the volume of transactions follows a different pattern. "The number of bank valuations considered was around 33,900, representing an increase of 2.8% compared to the previous month and a decrease of 2.9% year-on-year", according to the INE statement.
In the most sought-after types, the INE document indicates that "the median value of one-bedroom apartments rose by €58 to €3,076/m², while two-bedroom and three-bedroom apartments increased by €35 and €39, respectively, to €2,425/m² and €2,010/m²." Together, these three types accounted for 92.8% of apartment valuations carried out in October.
Detached houses, although with more moderate median values, also recorded significant increases. The median value of the bank valuation of detached houses was €1,472 per square meter in October, representing an increase of 11.8% over the same month last year. As with apartments, Greater Lisbon (€2,711/m²) and the Algarve (€2,499/m²) stand out with the highest values, while the Center and Alentejo regions record the lowest values (€1,084/m² and €1,146/m², respectively).
At the regional level, the Setúbal Peninsula continues to stand out with significant year-on-year growth. In terms of the annual variation in housing in general, the region recorded an increase of 26.7%, the highest in the country. In apartments, the increase was even more pronounced, reaching 29.3%. "The North showed the most significant increase compared to the previous month (2.5%), with the most intense decline observed in the Alentejo (-1.6%)", according to the INE document.
According to INE, "Greater Lisbon, the Algarve, the Setúbal Peninsula, the Autonomous Region of Madeira, the Alentejo Litoral, and the Metropolitan Area of Porto showed values above the country's median by 49.6%, 32.9%, 21.3%, 14.0%, 9.7%, and 0.6%, respectively." At the opposite end of the scale, "Alto Tâmega e Barroso, Alto Alentejo, and Beira Baixa were the regions with the lowest values relative to the national median (-53.4%, -53.2%, and -50.5%, respectively)."
Image credits: © Hunter Newton | Unsplash
Translated with DeepL.com (free version)
