Mortgage loans granted by Portuguese banks in 2019 rose by 8.1% in 2019, according to the Association of Industrial Construction and Public Works (AICCOPN). These figures represent a decade high, having risen to €10.63 billion, year on year.
According to a press release published last week, the association also found that there was a slight increase of 0.3%, year on year, at the end of 2019, taking into account the ‘stock’ of home loans. According to the data, it totalled €93.290 million.
On the other hand, the volume of credit granted to construction companies last year registered “a year-on-year drop of 6.6%, standing at just €16 billion, i.e. the lowest figure since the beginning of the 21st century”, said the association.
In terms of number of licences granted by city councils for construction and renovation works of residential buildings, there was a variation of 9.4% compared to the previous year, to 16,461. “The number of licensed dwellings in new buildings totalled 23,737, a result of a year-on-year growth of 17.2%,” said the press release.
AICCOPN also added that, in December, “the average value of housing for the purposes of bank appraisal was €1,321 per square metre, which translates in an increase of 8.3% compared to the €1,220” registered in the last month of 2018.
Read more here about the buying process in Portugal. If you have any additional questions, you can contact the Algarve Home Sales team here.
