According to Idealista News, the median evaluation by banks for properties has reached a new record high. In only a month, the median values have increased by €17 per m2 and by €144 per m2 in a year. In March, the median value by banks was at €1,331 per m2, a €17 (1.3%) increase since the month prior, according to data revealed by the National Institute of Statistics (INE). This growth has accompanied the increase in property prices.
The evaluation of apartments grew by 13,5% in a year, while homes grew by 7,5%. For apartments, the median evaluation was at €1,476 per m2 in March, a 13.5% increase from the year prior and a 1% increase from the month prior. The highest value compared to the year before was seen in Algarve at €1,794 per m2 and the lowest in the Alentejo at €964 per m2. Apartments with three rooms saw the largest median value increase by €17 to €1,316.
For homes, the median evaluation grew to €1,067 per m2 in March, a 7,5% increase from the year prior and a 1,9% increase from the month prior. The highest values were in the Algarve (€1,815) and the Metropolitan Area of Lisbon (€1,788), while Alentejo (€900) and the center of Portugal (€901) had the lowest values. Homes with two rooms saw the largest median value increase by €46 to €1,047 per m2.
There were 32,000 bank evaluations of properties in March of 2022, 23,5% more than in the month prior.
Whenever you apply for a mortgage in a bank, the bank will conduct an evaluation of the property you are going to buy in order to set the amount that will be loaned. While for residents, banks tend to give out loans of 80% to 90% of the value of the property, non-residents will only be offered 65% to 70% of the value of the property. Therefore, for most, it is important that bank evaluations continue to increase as house prices do so that your mortgage loan covers as much as possible of the price of the home.