Portugal home valuations hit record high

The median value of bank property valuations in Portugal reached a new record high of €2,208 per square metre in May, underlining the continued strength of the country’s housing market despite ongoing affordability concerns.

Figures released by Portugal’s National Statistics Institute (INE) show the median valuation used for mortgage applications increased by €34 per square metre compared with April, representing a monthly rise of 1.6%.

On an annual basis, valuations were 17.1% higher than in May 2025, accelerating from the 16.5% year-on-year increase recorded in April.

The latest figures indicate that property prices used by banks when assessing mortgage lending continue to rise at a rapid pace, with no Portuguese region recording either monthly or annual declines.

The Oeste and Tejo Valley and the north registered the strongest monthly increases, with valuations rising 1.9% in both regions.

Meanwhile, the Setúbal Peninsula posted the largest annual increase, with median valuations surging 22.5% compared with the same month last year.

The INE data also showed continued growth in mortgage-related activity.

Banks carried out around 35,500 property valuations during May, an increase of 3.1% compared with April and 0.8% higher than a year earlier.

Bank valuations are conducted as part of mortgage approval processes and are widely regarded as an important indicator of trends in Portugal’s residential property market.

The latest record comes as demand for housing continues to outstrip supply in many parts of the country, contributing to sustained upward pressure on property values, concludes Lusa.

source material: LUSA

Natasha Donn

Journalist for the Portugal Resident.