Banks in Portugal have announced that property prices continue to rise across the country with the largest increases in property valuations being found in the Algarve region.
Between August and September this year, banks registered a general increase in real estate valuations as part of their process of evaluating the worth of a property in relation to potentially granting credit to buyers.
The buoyant market, which has been growing for the past 18 months, found that between August and September the Algarve was the area of the country with the fastest levels of growth and that in general prices of property in Portugal had not been this high since September 2008.
In the Algarve, the average price of a property increased by some 9.7% in comparison to the same period in 2017, representing a rise on average of €139 to €1,567 per square metre.
The northern region recorded the second highest increase (8.1%), reaching €1,090 per square metre, while Lisbon and its metropolitan area saw prices increase by 6.8% standing now at €1,475 per square metre.
According to Eco News: “The banks’ valuation reached an average of €1,205 per square metre, which has been the highest value recorded since 2008, with an increasing pattern that has reached its 18th month in a row now. Data from the Portuguese Office for National Statistics (INE), shows that between August and September there was a 0.8% increase in the price per square metre in comparison to the previous month of August.”
With the upward trend in prices per square metre for the 18th consecutive month, the latest increase shows that it is 6.2% higher than the rate found in August 2017.
One of the real estate areas that has seen the highest increase is that of apartments with prices rising by 6% year on year.
As the real estate market in Portugal increases, prices are now returning to those that were seen before the global economic down turn, so while property values have increased, in many cases they have simply returned to prices that were seen before.
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