The median bank valuation for housing, used as a basis for granting credit, reached €1,945 per square meter in July. This is 18.7% more than in the same month last year, and €34 more than in the previous month.
Data from the Instituto Nacional de Estatística (INE) show that Alentejo recorded the most significant monthly increase of 4.2%, and there was no decrease in the other regions of the country.
Compared to July 2024, the median value of appraisals increased most significantly in the Setúbal Peninsula, with a rise of 24.2%. There were no decreases in this case either.
With regard to apartments, the median bank valuation reached €2,254 per square meter, up 2.1% from July and 24% from the same month last year. Greater Lisbon and the Algarve have the highest values, at €2,990 and €2,642 per square meter, respectively. The Alentejo has the lowest values, at €1,419 per square meter. However, it was the Setúbal Peninsula that recorded the highest year-on-year increase, at 25.6%. There was no decrease.
As for houses, the median bank valuation was €1,414 per square meter, 1.8% more than in the previous month and 10% more than in the same month last year. The highest values were observed in Lisbon, at €2,707 per square meter, and in the Algarve, at €2,505 per square meter. The Center and Alentejo regions had the lowest values, at €1,053 and €1,149 per square meter. However, the Azores recorded the highest increase in the country, at 17.8%.
The regions of Greater Lisbon, the Algarve, the Setúbal Peninsula, the Autonomous Region of Madeira, and the Alentejo Coast had valuation figures above the national median by 52.0%, 34.5%, 18.8%, 14.9%, and 7.3%, respectively. Beiras and Serra da Estrela, Beira Baixa, and Terras de Trás-os-Montes had values lower than the national median, at -50.3%, -49.8%, and -49.1%, respectively.
In July, 33,800 bank valuations were carried out, an increase of 3.8% compared to the previous month and 3.7% year-on-year.
Interest rates fall to 3.385%
At the same time, the implicit interest rate on all mortgage contracts fell in July to 3.385%, down 9.4 basis points from the previous month.
According to INE, in contracts signed in the last three months, the interest rate fell from 2.951% in June to 2.897% in July.
The average installment stood at €394, identical to the previous month, representing a decrease of €11 compared to July 2024. In July, the interest portion represented 51% of the average installment.
In the case of new contracts, the average installment rose by €5 to €635, 3.9% more than last year.
The average outstanding capital for all mortgage loans increased by €593 to €72,270.
Image credits: © Towfiqu Barbhuiya | Unsplash
Translated with DeepL.com (free version)
