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Portugal’s real estate market continues to show strong price momentum. According to the latest data released by Statistics Portugal (INE), the median bank valuation of residential property reached €2,240 per square metre in July 2026, setting a new all-time high.

This represents an increase of €12 compared with June, equivalent to a monthly rise of 0.5%. Compared with July 2025, valuations were up 15.2%. Although the annual growth rate slowed slightly from the 16.6% recorded in June, overall valuation levels continued to rise.

Bank property valuations are typically carried out as part of the mortgage application process and are used by financial institutions to assess property values and determine lending amounts. Unlike asking prices, this indicator reflects how banks value residential assets in actual lending transactions, making it an important reference point for assessing conditions in Portugal’s housing market.

More Than 34,000 Bank Valuations Conducted in July

According to INE, a total of 34,053 residential property valuations were carried out in July 2026, including 21,036 apartments and 13,017 houses.

The number of valuations increased by 0.6% year-on-year and by 1.4% compared with June, representing an additional 458 valuations.

At regional level, Alentejo recorded the strongest monthly increase in bank valuations, at 1.3%, while the Autonomous Region of the Azores saw a decline of 1.9%.

Compared with July 2025, the Setúbal Peninsula recorded the strongest growth, with bank valuations rising by 20.4%. No region recorded a year-on-year decline.

Apartment Valuations Rise 16.5%, with One-Bedroom Units Exceeding €3,300/m²

Apartments continued to show particularly strong valuation growth within the residential market.

In July, the median bank valuation for apartments in Portugal reached €2,627 per square metre, representing a 16.5% increase year-on-year and a 0.5% rise from the previous month.

Regional differences remained significant. Greater Lisbon recorded the highest apartment valuation at €3,469 per square metre, followed by the Algarve at €3,010 per square metre. The Centre and Alentejo regions recorded lower values of €1,739 and €1,778 per square metre, respectively.

Smaller apartments continued to command particularly high values per square metre:

• One-bedroom apartments rose to €3,343 per square metre, up €41 from the previous month;
• Two-bedroom apartments increased to €2,711 per square metre, up €17;
• Three-bedroom apartments reached €2,255 per square metre, an increase of €2.

Together, these three property types accounted for 92.9% of all apartment valuations during the month, providing a strong indication of price movements across the mainstream apartment market.

House Valuations Rise to €1,606 per Square Metre

Houses also continued to record growth.

In July, the national median bank valuation for houses reached €1,606 per square metre, up 13.6% year-on-year and 0.4% month-on-month.

Greater Lisbon remained among the most highly valued markets at €2,922 per square metre, followed by the Algarve at €2,846 per square metre. The Centre and Alentejo regions recorded lower valuations of €1,163 and €1,300 per square metre, respectively.

The Autonomous Region of Madeira recorded the strongest annual increase in house valuations, at 17.8%.

By property type, two-bedroom houses rose to €1,612 per square metre, while three-bedroom houses increased to €1,565 per square metre. Four-bedroom houses, meanwhile, declined to €1,655 per square metre.

Lisbon, the Algarve and Setúbal Remain Well Above the National Average

Regional differences continue to be a defining feature of Portugal’s residential property market.

According to the NUTS III regional analysis, bank valuations in Greater Lisbon were 51.7% above the national median in July. The Algarve stood 32.6% above the national level, while the Setúbal Peninsula was 24.2% higher.

By contrast, Beira Baixa, Alto Alentejo, and Alto Tâmega e Barroso recorded valuations 52.9%, 52.5% and 50.0% below the national median, respectively.

These figures highlight that Portugal’s property market does not move uniformly across the country. Demographics, employment, tourism, international demand and local housing supply are contributing to increasingly distinct property values across different regions.

Bank valuations are not the same as final transaction prices and should not be used in isolation to predict future property price movements. Nevertheless, as an important part of the mortgage lending process, their continued rise indicates that the value assigned to residential assets by financial institutions remains at historically high levels.

Reference link: https://sicnoticias.pt/economia/habitacao/2026-08-26-video-avaliacao-bancaria-da-habitacao-bate-recorde-em-julho-e4131cc8

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