[DEMO] Bank valuations rise by 18.7%

Demonstration content. Text adapted from the Gaia Urban Observatory, with place names swapped. It does not describe real facts or data about the municipality of Loures.

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)